Question: Monroe has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $20 and

Monroe has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $20 and has the following manufacturing costs:

Per unit

Direct materials ...............................................$6

Direct labor ............................................. 3

Variable manufacturing overhead ..................... 2

Fixed manufacturing overhead ......................... 6

Unite cost ...............................................17

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

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