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undefined Mason has received a special order for 870 units of its product at a special price of $247. The product currently sells 18,700 units
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Mason has received a special order for 870 units of its product at a special price of $247. The product currently sells 18,700 units for $307 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 87 67 72 47 $ 273 Assume that Mason has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Mason accepts the order, what effect will the order have on the company's short-term profit? Now assume that Mason has sufficient capacity to fill 507 units of the order without harming normal sales. b. If Mason accepts the order and fills it completely, what effect will the order have on the company's short-term profit? c. If Mason accepts the special order, what average price should Mason charge to make a $20,700 incremental profit? (Round your answer to 2 decimal places.) Average PriceStep by Step Solution
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