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Bertans has received a special order for 2,700 units of its product at a special price of $16. The product normally sells for and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $16 Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the any short-term profit?

Bertans has received a special order for 2,700 units of its product at a special price of $16. The product normally sells for and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $16 Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the any short-term profit?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bertans has received a special order for 2,700 units of its product at a special price of $16. The product normally sells for $27 and has the following manufacturing costs: | | Per Unit | |---------------------|----------| | Direct materials | $7 | | Direct labor | $4 | | Variable manufacturing overhead | $2 | | Fixed manufacturing overhead | $3 | | **Unit cost** | **$16** | Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the company's short-term profit? If a decrease, place a minus sign before your answer. For example, a decrease of $1,000 would be answered as -1,000. \[ \text{Answer Box} \]
Transcribed Image Text:Bertans has received a special order for 2,700 units of its product at a special price of $16. The product normally sells for $27 and has the following manufacturing costs: | | Per Unit | |---------------------|----------| | Direct materials | $7 | | Direct labor | $4 | | Variable manufacturing overhead | $2 | | Fixed manufacturing overhead | $3 | | **Unit cost** | **$16** | Assume that Bertans has sufficient capacity to fill the order. If Bertans accepts the order, what effect will the order have on the company's short-term profit? If a decrease, place a minus sign before your answer. For example, a decrease of $1,000 would be answered as -1,000. \[ \text{Answer Box} \]
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