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Bertans has received a special order for 2,400 units of its product at a special price of $18. The product normally sells for $25 and

Bertans has received a special order for 2,400 units of its product at a special price of $18. The product normally sells for $25 and has the following manufacturing costs:

Per unit

Direct materials

$

7

Direct labor

4

Variable manufacturing overhead

2

Fixed manufacturing overhead

3

Unit cost

$

16

Assume that Bertans' production is at full capacity. If Bertans accepts the order, what effect will the order have on the companys short-term profit?

If a decrease, place a sign before your answer. For example, a decrease of $1,000 would be answered -1,000.

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