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The Bluestem has received a special order for 2,000 units of its product at a special price of $150. The product normal sells for $200
The Bluestem has received a special order for 2,000 units of its product at a special price of $150. The product normal sells for $200 and has the following manufacturing costs
Per Unit | |
Direct Materials | $60 |
Direct Labor | 40 |
Variable manufacturing overhead | 30 |
Fixed manufacturing overhead | 20 |
Unit Cost | 150 |
Bluestem is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Bluestem accepts the order, what effect will the order have on the companys short -term profit?
$60,000 decrease | ||
$60,000 increase | ||
$100,000 decrease | ||
Zero |
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