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Sonar Corp, has received a special order for 2,000 units of its product at a special price of $195. The product normally sells for $260

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Sonar Corp, has received a special order for 2,000 units of its product at a special price of $195. The product normally sells for $260 and has the following manufacturing costs: Per unit $ 78 52 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost 39 65 $ 234 Assume that Sonar has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Sonar accepts the order, what effect will the order have on the company's short-term profit? b. What minimum price should Sonar charge to achieve a $65,000 incremental profit? c. Now assume Sonar is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Sonar accepts the order, what effect will the order have on the company's short-term profit? B 1 I EE311xx

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