Question: Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation

Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation of $150 per unit. They are unable to change the pricing because of contractual obligations.

What is the impact of this error in cost assignment if sales were as predicted?

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