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A company has received a special order for 1,900 units of its product at a special price of $370. The product normally sells for
A company has received a special order for 1,900 units of its product at a special price of $370. The product normally sells for $380 and has the following manufacturing costs: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $ 103 76 38 19 $ 236 Assume there is sufficient capacity to fill the order without harming normal production and sales. Required: a. If the order is accepted, what effect will it have on the company's short-term profit? b. What minimum unit price should the compnay charge to achieve a $28,500 incremental profit? c. Now, assume the company is currently operating at full capacity and cannot fill the order without harming normal production and sales. If the order is accepted, what effect will it have on the company's short-term profit? Complete this question by entering your answers in the tabs below. Required A Required B Required C If Marcy accepts the order, what effect will the order have on the company's short-term profit?
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