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Ross has received a special order for 10,000 units of its product at a special price of $23. The product normally sells for $28 and
Ross has received a special order for 10,000 units of its product at a special price of $23. The product normally sells for $28 and has the following manufacturing costs: Per unit $ 9 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost 4 6 $ 25 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? 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 $40,000 increase $30,000 decrease $90,000 increase $20,000 decrease
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