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Almond Company has received a special order for 11,000 units of its product at a special price of $60. The product normally sells for $69
Almond Company has received a special order for 11,000 units of its product at a special price of $60. The product normally sells for $69 and has the following manufacturing costs:
Assume that Almond has sufficient capacity to fill the order without harming normal production and sales. If Almond accepts the order, what effect will the order have on the companys short-term profit?
\begin{tabular}{lr} Direct materials & Cost per Unit \\ Direct labor & $21 \\ Variable manufacturing overhead & 16 \\ Fixed manufacturing overhead & 19 \\ Total unit cost & 4 \\ \hline \end{tabular}
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