Almond has received a special order for 11,000 units of its product at a special price of $60. The product normally sells for $69 and has the following manufacturing costs:     Per unit Direct materials   $ 21 Direct labor     16 Variable manufacturing overhead     19 Fixed manufacturing overhead     4 Unit cost   $ 60   Assume that Almond has sufficient capacity to fill the order. If Almond accepts the order, what effect will the order have on the company’s short-term profit?     Multiple Choice   $143,000 decrease   $99,000 increase   Zero   $44,000 increase

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
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Almond has received a special order for 11,000 units of its product at a special price of $60. The product normally sells for $69 and has the following manufacturing costs:
 

  Per unit
Direct materials   $ 21
Direct labor     16
Variable manufacturing overhead     19
Fixed manufacturing overhead     4
Unit cost   $ 60
 


Assume that Almond has sufficient capacity to fill the order. If Almond accepts the order, what effect will the order have on the company’s short-term profit?
 

 

Multiple Choice

  •  
    $143,000 decrease
  •  
    $99,000 increase
  •  
    Zero
  •  
    $44,000 increase
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