Marcy Company has received a special order for 2,000 units of its product at a special price of $60. The product normally sells for $80 and has the following manufacturing costs:

	Cost per Unit
Direct materials	$ 24
Direct labor	16
Variable manufacturing overhead	12
Fixed manufacturing overhead	20
Total unit cost	$ 72

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 $20,000 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?