Cranberry has received a special order for 170 units of its product at a special price of $2,350. The product normally sells.for $2,850 and has thefollowing manufacturing costs:Per unitDirect materials770Direct labor470Variable manufacturing overhead570Fixed manufacturing overhead67051Unit cost$2,480Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effectwill the order have on the company's short-term profit?

The variable cost are effected with changes in number of units produced. The fixed cost remains…

Cranberry has received a special order for 170 units of its product at a special price of $2,350. The product normally sells.for $2,850 and has the following manufacturing costs: Per unit Direct materials $ 770 Direct labor 470 Variable manufacturing overhead Fixed manufacturing overhead Unit cost 570 670 $2,480 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?

Cranberry has received a special order for 170 units of its product at a special price of $2,350. The product normally sells.for $2,850 and has the following manufacturing costs: Per unit Direct materials $ 770 Direct labor 470 Variable manufacturing overhead Fixed manufacturing overhead Unit cost 570 670 $2,480 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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 18E: A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price...

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