Walnut has received a special order for 2.500 units of its product at a special price of $170. The product normally sells for $210 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Multiple Choice Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the company's short-term profit? $92,500 decrease O $92,500 increase O Zero Per unit $ 62 30 $100,000 decrease 40 75 $207

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Walnut has received a special order for 2.500 units of its product at a special
price of $170. The product normally sells for $210 and has the following
manufacturing costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit cost
Walnut is currently operating at full capacity and cannot fill the order without
harming normal production and sales. If Walnut accepts the order, what effect
will the order have on the company's short-term profit?
Multiple Choice
$92,500 decrease
$92,500 increase
Zero
Per unit
$ 62
30
40
75
$207
$100,000 decrease
Transcribed Image Text:Walnut has received a special order for 2.500 units of its product at a special price of $170. The product normally sells for $210 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice $92,500 decrease $92,500 increase Zero Per unit $ 62 30 40 75 $207 $100,000 decrease
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