Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs: Direct materials 690 Direct Labor 390 Variable manufacturing overhead 490 Fixed manufaturing overhead 590 Unit cost $2,160 Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit? 47,300 Increase 17,600 Decrease 17,600 Increase 64,900 Decrease ?
Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs: Direct materials 690 Direct Labor 390 Variable manufacturing overhead 490 Fixed manufaturing overhead 590 Unit cost $2,160 Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit? 47,300 Increase 17,600 Decrease 17,600 Increase 64,900 Decrease ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs:
Direct materials 690
Direct Labor 390
Variable manufacturing overhead 490
Fixed manufaturing overhead 590
Unit cost $2,160
Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit?
47,300 Increase
17,600 Decrease
17,600 Increase
64,900 Decrease ?
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