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Poppy has received a special order for 1,000 units of its product at a special price of $125 per unit. The product currently sells 18,000
Poppy has received a special order for 1,000 units of its product at a special price of $125 per unit. The product currently sells 18,000 units for $150 per unit and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 45 30 35 25 $135 Assume that all fixed costs are unavoidable, and are unchanged by any decision about this special order. Also Poppy only has sufficient capacity to fill 500 units of the order without harming normal sales. So selling more than 500 in the special order means those "extra" units are not sold through Poppy's normal sales process, but instead as part of the special order. If Poppy accepts the special order and fills it completely, what effect will the order have on the company's short-term profit? (Select increase or decrease in profit, then enter the dollar amount; if your answser is "decrease in profit" you still enter the number as a positive number since that is the amount of the decrease.) Increase in Profit
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