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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?

$28,000 decrease

$56,000 increase

$28,000 increase

$84,000 decrease

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