Capitol has received a special order for 2,150 units of its product at a special price...
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Capitol has received a special order for 2,150 units of its product at a special price of $154. The product normally sells for $215 and has the following manufacturing costs: Per unit $ 54 Direct materials Direct labor 34 Variable manufacturing overhead Fixed manufacturing overhead Unit cost 24 44 $ 156 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? b. What minimum price should Capitol charge to achieve a $44,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price Capitol has received a special order for 2,150 units of its product at a special price of $154. The product normally sells for $215 and has the following manufacturing costs: Per unit $ 54 Direct materials Direct labor 34 Variable manufacturing overhead Fixed manufacturing overhead Unit cost 24 44 $ 156 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? b. What minimum price should Capitol charge to achieve a $44,000 incremental profit? (Round your answer to 2 decimal places.) Minimum Price
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