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Mason has received a special order for 1,000 units of its product at a special price of $250. The product currently sells 18,000 units for
Mason has received a special order for 1,000 units of its product at a special price of $250. The product currently sells 18,000 units for $300 and has the following manufacturing costs: Per unit $ 90 60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost 75 50 $275 Assume that Mason has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Mason accepts the order, what effect will the order have on the company's short-term profit? For requirements b&c, assume that Mason has sufficient capacity to fill 500 units of the order without harming normal sales. b. If Mason accepts the order and fills it completely, what effect will the order have on the company's short-term profit? c. If Mason accepts the special order, what average price should Mason charge to make a $20,000 incremental profit? (Round your answer to 2 decimal places.) Average Price
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