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Ross has received a special order for 19,000 units of its product at a special price of $21. The product normally sells for $25 and
Ross has received a special order for 19,000 units of its product at a special price of $21. The product normally sells for $25 and has the following manufacturing costs: Per unit Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 5 Fixed manufacturing overhead 4 Unit cost $ 22 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
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$133,000 increase
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$19,000 decrease
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$57,000 increase
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$57,000 decrease
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