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Capitol has received a special order for 2,170 units of its product at a special price of $156. The product normally sells for $217 and
Capitol has received a special order for 2,170 units of its product at a special price of $156. The product normally sells for $217 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead: Unit cost Per unit $ 56 36 26 46 $164 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? Increase in Profit $ 82.460 b. What minimum price should Capitol charge to achieve a $46,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price $ 139.20 < Prev 20 of 21 Next > Saved b. What minimum price should Capitol charge to achieve a $46,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price $ 139.20 Help Sa c. Now assume Capitol is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Capitol accepts the order, what effect will the order have on the company's short-term profit
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