Question
Cranberry has received a special order for 140 units of its product at a special price of $2,000. The product normally sells for $2,500 and
Cranberry has received a special order for 140 units of its product at a special price of $2,000. The product normally sells for $2,500 and has the following manufacturing costs: Per unit Direct materials $ 700 Direct labor 400 Variable manufacturing overhead 500 Fixed manufacturing overhead 600 Unit cost $ 2,200 Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the companys short-term profit? $56,000 increase $28,000 decrease $84,000 decrease $28,000 increase
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