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Help Cranberry has received a special order for 120 units of its product at a special price of $2,300. The product normally sells for $2,800
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Cranberry has received a special order for 120 units of its product at a special price of $2,300. The product normally sells for $2,800 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 760 460 560 660 $2,440 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 $62,400 increase $79,200 decrease $16,800 decrease $16,800 increaseStep by Step Solution
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