Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs: Direct materials 690 Direct Labor 390 Variable manufacturing overhead 490 Fixed manufaturing overhead 590 Unit cost $2,160 Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit? 47,300 Increase 17,600 Decrease 17,600 Increase 64,900 Decrease ?
Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs: Direct materials 690 Direct Labor 390 Variable manufacturing overhead 490 Fixed manufaturing overhead 590 Unit cost $2,160 Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit? 47,300 Increase 17,600 Decrease 17,600 Increase 64,900 Decrease ?
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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Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs:
Direct materials 690
Direct Labor 390
Variable manufacturing overhead 490
Fixed manufaturing overhead 590
Unit cost $2,160
Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit?
47,300 Increase
17,600 Decrease
17,600 Increase
64,900 Decrease ?
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