PLEASE ANSWER A, B & C Capitol has received a special order for 2,000 units of its product at a special price of $195. The product normally sells for $260 and has the following manufacturing costs: Per unit Direct materials $ 78 Direct labor52 Variable manufacturing overhead 39 Fixed manufacturing overhend 65 Unit cost 234 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a) If Capital accepts the order, what effect will the order have on the company's short-term profit? . b) What minimum price should Capital charge to achieve a $65,000 incremental profit? Now assume Capital is currently operating at full capacity and cannot fill the order without harming normal production and sales. c) If Capitol accepts the order, what effect will the order have on the company's short- term profit?
PLEASE ANSWER A, B & C
Capitol has received a special order for 2,000 units of its product at a special price of $195. The product normally sells for $260 and has the following
a) If Capital accepts the order, what effect will the order have on the company's short-term profit? .
b) What minimum price should Capital charge to achieve a $65,000 incremental profit?
Now assume Capital is currently operating at full capacity and cannot fill the order without harming normal production and sales.
c) If Capitol accepts the order, what effect will the order have on the company's short- term profit?
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