Poppy, Incorporated, has received a special order for $1,000$ units of its product at a special price of $$105.$ The product currently sells

$16,000$ units for $$150$ and has the following manufacturing costs:

Direct materials

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead

Total unit cost

Required:

Assume that Poppy has sufficient capacity to fill the order without harming normal production and sales.

a$.$ If Poppy accepts the order, what effect will the order have on the company's short$-$term profit?

For the next two questions, now assume that Poppy has sufficient capacity to fill $500$ units of the order without harming normal

sales.

b$.$ If Poppy accepts the order and fills it completely, what effect will the order have on the company's short$-$term profit?

c$.$ If Poppy accepts the special order, what average price should Poppy charge to make a $$101,400$ incremental profit?

Complete this question by entering your answers in the tabs below.

Required A

If Poppy accepts the order, what effect will the order have on the company's short$-$term profit?

For the next two questions, now assume that Poppy has sufficient capacity to fill $500$ units of the order without harming

normal sales.