Question
Cranberry, Incorporated has received a special order for 170 units of its product at a special price of $2,350. The product normally sells for
Cranberry, Incorporated has received a special order for 170 units of its product at a special price of $2,350. The product normally sells for $2,850 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 770 470 570 670 $ 2,480 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 company's short-term profit? Multiple Choice $91,800 increase $22,100 increase
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