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Cranberry Company has just received a one-time offer to purchase 5000 units of its product A for a price of $20 each. The product A
Cranberry Company has just received a one-time offer to purchase 5000 units of its product A for a price of $20 each. The product A normally sells for $25 and costs $21 to produce ($18 in variable costs and $3 of fixed overhead). Cranberry Company has enough excess capacity to accept the order. Should Cranberry Company accept the special order? No Yes QUESTION 19 Refer to Cranberry Company. What is the increase or decrease in short-term profit from accepting the special order? O increase $10,000 O increase $100,000 O decrease $5,000 O decrease $25,000 QUESTION 20 Refer to Cranberry Company. What minimum price should Cranberry charge to this offer to achieve a $20,000 incremental profit?) $20 $25 $24 O $22
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