Potter has received a special order for 11,000 units of its product at a special price of $15. The product normally sells for $23 and has the following manufacturing costs:     Per unit Direct materials   $ 7 Direct labor     4 Variable manufacturing overhead     3 Fixed manufacturing overhead     4 Unit cost   $ 18   Potter is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Potter accepts the order, what effect will the order have on the company’s short-term profit?     Multiple Choice   $11,000 decrease   $11,000 increase   $88,000 decrease   $77,000 increase

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.