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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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