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Walnut has received a special order for 2,900 units of its product at a special price of $230. The product normally sells for $270 and

Walnut has received a special order for 2,900 units of its product at a special price of $230. The product normally sells for $270 and has the following manufacturing costs:

Per unit
Direct materials $ 66
Direct labor 31
Variable manufacturing overhead 47
Fixed manufacturing overhead 117
Unit cost $ 261

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?

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