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Xenon has received a special order for 120 units of its product at a special price of $1,850. The product normally sells for $2,350 and

Xenon has received a special order for 120 units of its product at a special price of $1,850. The product normally sells for $2,350 and has the following manufacturing costs:

Per unit
Direct materials $640
Direct labor 340
Variable manufacturing overhead 440
Fixed manufacturing overhead

540

Total cost per unit

$1,960

Assume that Xenon has sufficient capacity to fill the order without harming normal production and sales. If Xenon accepts the order, what effect will the order have on the company's short-term profit?

$51,600 increase
$13,200 increase
$64,800 decrease
$13,200 decrease

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