Question
Cranberry has received a special order for 150 units of its product at a special price of $1,900. The product normally sells for $2,400 and
Cranberry has received a special order for 150 units of its product at a special price of $1,900. The product normally sells for $2,400 and has the following manufacturing costs: Per unit Direct materials $ 660 Direct labor 360 Variable manufacturing overhead 460 Fixed manufacturing overhead 560 Unit cost $ 2,040 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? Multiple Choice $21,000 increase $84,000 decrease $63,000 increase $21,000 decrease
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