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received a special order for 2,900 units of its product at a special price of $190. The product normally sells for $230 and has the
received a special order for 2,900 units of its product at a special price of $190. The product normally sells for $230 and has the following manufacturing costs:
| Per unit | ||
Direct materials |
| $ | 62 |
Direct labor |
|
| 53 |
Variable manufacturing overhead |
|
| 42 |
Fixed manufacturing overhead |
|
| 69 |
Unit cost |
| $ | 226 |
|
Assume that Shunto Corp. has sufficient capacity to fill the order without harming normal production and sales. If Shunto Corp. accepts the order, what effect will the order have on the companys short-term profit?
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