What effect will order have on companys short-term profit


Almond has received a special order for 13,000 units of its product at a special price of $50. The product normally sells for $61 and has the following manufacturing costs:

   Per unit
  Direct materials $18    
  Direct labor 14    
  Variable manufacturing overhead 10    
  Fixed manufacturing overhead

8    

       Unit cost

$50    

Assume that Almond has sufficient capacity to fill the order. If Almond accepts the order, what effect will the order have on the company's short-term profit?

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Accounting Basics: What effect will order have on companys short-term profit
Reference No:- TGS0674107

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