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Bertans has received a special order for 4,900 units of its product at a special price of $23. The product normally sells for $28 and
Bertans has received a special order for 4,900 units of its product at a special price of $23. The product normally sells for $28 and has the following manufacturing costs:
Per unit
Direct materials $ 8
Direct labor $4
Variable manufacturing overhead $3
Fixed manufacturing overhead $2
Unit cost $17
Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the companys short-term profit?
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