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, Capitol has received a special order for 2,040 units of its product at a special price of $154. The product normally sells for
, Capitol has received a special order for 2,040 units of its product at a special price of $154. The product normally sells for $204 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit F 54 34 24 44 $156 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Capitol accepts the order, what effect will the order have on the company's short-term profit?
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