Per unit Direct materials $ 680 Direct labor 380 Variable manufacturing overhead 480 Fixed manufacturing overhead 580 Unit cost $2,120 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 $54,000 increase $33,000 increase $33,000 decrease $87,000 decrease O O O

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cranberry has received a special order for 150 units of its product at a special price of $1,900. The product normally sells for $2,400 and has the following manufacturing costs:
Per unit
Direct materials
$
680
Direct labor
380
Variable manufacturing overhead
480
Fixed manufacturing overhead
580
Unit cost
$2,120
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
$54,000 increase
$33,000 increase
$33,000 decrease
$87,000 decrease
Transcribed Image Text:Cranberry has received a special order for 150 units of its product at a special price of $1,900. The product normally sells for $2,400 and has the following manufacturing costs: Per unit Direct materials $ 680 Direct labor 380 Variable manufacturing overhead 480 Fixed manufacturing overhead 580 Unit cost $2,120 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 $54,000 increase $33,000 increase $33,000 decrease $87,000 decrease
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