Ross has received a special order for 14,000 units of its product at a special price of $16. The product normally sells for $21 and has the following manufacturing costs:

	Per unit
Direct materials		$	6
Direct labor			4
Variable manufacturing overhead			3
Fixed manufacturing overhead			7
Unit cost		$	20

Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the companys short-term profit?

Multiple Choice

• $42,000 increase

• $112,000 increase

• $56,000 decrease

• $14,000 decrease