Cranberry, Incorporated has received a special order for 160 units of its product at a special price of $1,750. The product normally sells for $2,250 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 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 $88,000 decrease Cost per Unit $ 650 350 450 550 $ 2,000 $48,000 increase
Cranberry, Incorporated has received a special order for 160 units of its product at a special price of $1,750. The product normally sells for $2,250 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 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 $88,000 decrease Cost per Unit $ 650 350 450 550 $ 2,000 $48,000 increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple Choice
$88,000 decrease
$48,000 Increase
$40,000 increase
$40,000 decrease
Transcribed Image Text:Cranberry, Incorporated has received a special order for 160 units of its product at a special price of $1,750. The product normally sells for $2,250 and
has the following manufacturing costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total 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
$88,000 decrease
Cost per Unit
$650
350
450
550
$ 2,000
$48,000 Increase
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