Cranberry has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,600 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice Multiple Choice $22.000 decrease $22,000 decrease O$41,000 increase $22.000 increase Per unit $ 730 430 530 630 $2,320 $63,000 decrease

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cranberry has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,600 and has
the following manufacturing costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit cost
Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order,
what effect will the order have on the company's short-term profit?
Multiple Choice
Multiple Choice
$22.000 decrease
O$22,000 decrease
$41,000 increase
$22.000 increase
Per unit
$
730
430
530
630
$2,320
$63,000 decrease
Transcribed Image Text:Cranberry has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,600 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice Multiple Choice $22.000 decrease O$22,000 decrease $41,000 increase $22.000 increase Per unit $ 730 430 530 630 $2,320 $63,000 decrease
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