Problem
Ross has received a special order for 16,000 units of its product at a special price of $19. The product normally sells for $23 and has the following manufacturing costs:
Per unit
Direct materials $ 9
Direct labor 6
Variable manufacturing overhead 3
Fixed manufacturing overhead 3
Unit cost $ 21
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?