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Problem 7-116 (Algo) (LO 7-3] Marcy has received a special order for 3,000 units of its product at a special price of $227. The product

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Problem 7-116 (Algo) (LO 7-3] Marcy has received a special order for 3,000 units of its product at a special price of $227. The product normally sells for $310 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $105 56 39 19 $219 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 company's short-term profit? Increase in Profit b. What minimum price should Marcy charge to achieve a $75,000 Incremental profit? Minimum Price $ 244 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 company's short-term profit? Increase in Profit

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