Cranberry has received a special order for 170 units of its product at a special price of $2,400. The product normally sells for $2,900 and has the following manufacturing costs: Per unit Direct materials 780 Direct labor 480 580 Variable manufacturing overhead Fixed manufacturing overhead 680 Unit cost $2,520 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? $ Multiple Choice $95,200 increase $20,400 decrease $115,600 decrease $20,400 increase Ross has received a special order for 17,000 units of its product at a special price of $20. The product normally sells for $26 and has the following manufacturing costs: Per unit Direct materials $6 Direct labor 5 Variable manufacturing overhead 5 Fixed manufacturing overhead 9 Unit cost $25 Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company's short term profit? Multiple Choice $85,000 decrease $68,000 increase $170,000 increase $17,000 decrease
