Marcy has received a special order for 2,700 units of its product at a special price of $96. The product normally sells for $110 and has the following manufacturing costs:

	Per unit
Direct materials		$	32
Direct labor			20
Variable manufacturing overhead			13
Fixed manufacturing overhead			7
Unit cost		$	72

Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Marcy accepts the order, what effect will the order have on the companys short-term profit?

b. What minimum price should Marcy charge to achieve a $83,700 incremental profit?

c. 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 companys short-term profit?