7. Marcy has received a special order for 2,000 units of its product at a special price of $60. The product normally sells for $80 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $24 16 12 20 Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Marcy accepts the order, what effect will the order have on the company's short-term profit?
7. Marcy has received a special order for 2,000 units of its product at a special price of $60. The product normally sells for $80 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $24 16 12 20 Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Marcy accepts the order, what effect will the order have on the company's short-term profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with show all calculation thanku
Transcribed Image Text:7. Marcy has received a special order for 2,000 units of its product at a special price of $60. The product normally sells
for $80 and has the following manufacturing costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit cost
Per unit
$24
16
12
20
72
Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed
overhead is unavoidable.
a. If Marcy accepts the order, what effect will the order have on the company's short-term profit?
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