Cranberry Inc. has received a special order for 130 unite of its product at a...
60.1K
Verified Solution
Question
Accounting
Cranberry Inc. has received a special order for 130 unite of its product at a special price of $1700. The product normally sells for $2200 ans has the following manufacturing costs:
Assume that Cranberry has sufficent capacity to fill the order eithout harmjng normal production and sales. If Crnaberry accepts the order, what effect will the order have on the company's short term profit? a) 44200 increase b) 23400 increase c) 23400 decrease d) 67600 decrease \begin{tabular}{lr} & Cost per Unit \\ Direct materials & $620 \\ Direct labor & 320 \\ Variable manufacturing overhead & 420 \\ Fixed manufacturing overhead & 520 \\ Total unit cost & $1,880 \\ \hline \end{tabular}

Assume that Cranberry has sufficent capacity to fill the order eithout harmjng normal production and sales. If Crnaberry accepts the order, what effect will the order have on the company's short term profit?
a) 44200 increase
b) 23400 increase
c) 23400 decrease
d) 67600 decrease
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.