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Walnut has received a special order for 2,800 units of its product at a special price of $245. The product normally sells for $290 and

Walnut has received a special order for 2,800 units of its product at a special price of $245. The product normally sells for $290 and has the following manufacturing costs: Per unit Direct materials $ 63 Direct labor 58 Variable manufacturing overhead 68 Fixed manufacturing overhead 91 Unit cost $ 280 Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the companys short-term profit? Multiple Choice

$98,000 increase

$126,000 decrease

$98,000 decrease

Zero

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