Marcy Company has received a special order for 1,300 units of its product at a special price of $245. The product normally sells for $310 and has the following manufacturing costs:

	Cost per Unit
Direct materials	$ 99
Direct labor	74
Variable manufacturing overhead	37
Fixed manufacturing overhead	17
Total unit cost	$ 227

Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales.

Required:

If Marcy accepts the order, what effect will the order have on the company's short-term profit?

What minimum unit price should Capital charge to achieve a $23,400 incremental profit?

Now assume Marcy is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Marcy accepts the order, what effect will the order have on the company's short-term profit?