Mason Company has received a special order for 870 units of its product at a special...

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Mason Company has received a special order for 870 units of its product at a special price of $247. The product currently sells 18,700 units for $307 and has the following manufacturing costs: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $ 87 67 72 47 $ 273 Assume that Mason has sufficient capacity to fill the order without harming normal production and sales. Required: a. If Mason accepts the order, what effect will the order have on the company's short-term profit? For the next two questions, now assume that Mason has sufficient capacity to fill 507 units of the order without harming normal sales. b. If Mason accepts the order and fills it completely, what effect will the order have on the company's short-term profit? c. If Mason accepts the special order, what average unit price should Mason charge to make a $20,700 incremental profit? Mason Company has received a special order for 870 units of its product at a special price of $247. The product currently sells 18,700 units for $307 and has the following manufacturing costs: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $ 87 67 72 47 $ 273 Assume that Mason has sufficient capacity to fill the order without harming normal production and sales. Required: a. If Mason accepts the order, what effect will the order have on the company's short-term profit? For the next two questions, now assume that Mason has sufficient capacity to fill 507 units of the order without harming normal sales. b. If Mason accepts the order and fills it completely, what effect will the order have on the company's short-term profit? c. If Mason accepts the special order, what average unit price should Mason charge to make a $20,700 incremental profit?

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