Saved Marcy has received a special order for 3,300 unts of its product at a special price of $162 The product normally sells for $210 and has te bilowing marufacturing Costs 29 Per unit $ 67 Airact uterials Dirwct Inbor Farinble mfacturing overbead Td naafacturing Ovezhaad 10 25 12 Dit cart $144 Assurme that Marcy has sufcient capacity to fil the order without harming normal production and sales and all fixed overhead is uravoidable LFMacy accepts the order, what effect wil the order have on the company's short-term profit? What minimum price should Marcy charge to achieve a $115,500 incremental profit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mary has received a special order for 3300 units of tis product at a special price of $162. The product normally sells for $210 and has
te bilowing marufacturing costs
29
Per unit
$ 67
10
Diract muterials
irect Inbor
25
Fazible mtacturing overbaad
Tind naufacturing Orezhead
it cart
12
$144
Assume that Mercy has suficient capacity to fl the order without harming normal production and sales and all fixed overhead is
uravoidable
LFlary accepts the order,what effect wilthe order have on the company's short-term profit?
& What minimum price should Marcy charge to achieve a $115,500 incremental profit?
Transcribed Image Text:Saved Mary has received a special order for 3300 units of tis product at a special price of $162. The product normally sells for $210 and has te bilowing marufacturing costs 29 Per unit $ 67 10 Diract muterials irect Inbor 25 Fazible mtacturing overbaad Tind naufacturing Orezhead it cart 12 $144 Assume that Mercy has suficient capacity to fl the order without harming normal production and sales and all fixed overhead is uravoidable LFlary accepts the order,what effect wilthe order have on the company's short-term profit? & What minimum price should Marcy charge to achieve a $115,500 incremental profit?
c Now aSsure Mary's curerty operating at full capacty and cannot filthe order without harming normal production and sales. If
Mary accepts the order, what effet wil the order have on the company's short-term profit?
Transcribed Image Text:c Now aSsure Mary's curerty operating at full capacty and cannot filthe order without harming normal production and sales. If Mary accepts the order, what effet wil the order have on the company's short-term profit?
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