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Pinto Co. has received a special order for 2,200 units of its product at a special price of $200. The product normally sells for $280
Pinto Co. has received a special order for 2,200 units of its product at a special price of $200. The product normally sells for $280 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 67 37 46 82 $232 Assume that Pinto Co. has sufficient capacity to fill the order without harming normal production and sales. If Pinto Co. accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice $70,400 decrease $176,000 decrease $70,400 increase o $110,000 increase Ross has received a special order for 12,000 units of its product at a special price of $25. The product normally sells for $35 and has the following manufacturing costs: Per unit $ 7 6 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost 3 11 $27 Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice $96,000 decrease $108,000 increase a $228,000 increase $24,000 decrease Cranberry has received a special order for 180 units of its product at a special price of $1,600. The product normally sells for $2,100 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 610 310 410 510 $1,840 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 $91,800 decrease $48,600 increase O $43,200 increase O $43,200 decrease
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