Ross has received a special order for 12,000 units of its product at a special...
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Accounting
Ross has received a special order for 12,000 units of its product at a special price of $22. The product normally sells for $27 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 7 | |
| Direct labor | 8 | ||
| Variable manufacturing overhead | 5 | ||
| Fixed manufacturing overhead | 7 | ||
| Unit cost | $ | 27 | |
Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the companys short-term profit?
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