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Camp Tent Company has received a special order for 10,000 units at a discounted price of P5.000 each. The product, which normally sells for P7,500,

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Camp Tent Company has received a special order for 10,000 units at a discounted price of P5.000 each. The product, which normally sells for P7,500, has the following manufacturing costs: Cost per unit Direct materials P2.000 Direct labor 1.000 Variable manufacturing overhead 1,000 Fixed manufacturing overhead 1,500 1. Assume Camp Tent has enough extra capacity to fill the order without affecting the production or sale of its product to regular customers. If Big Top accepts the offer, what effect will the order have on the company's short-term profit? (3 pts.) 2. If Big Top is at full capacity, what price would be needed to cover all incremental costs, including opportunity costs? (2 pts.)

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