Question: Saved Capitol has received a special order for 2,160 units of its product at a special price of $155. The product normally sells for $216
Saved Capitol has received a special order for 2,160 units of its product at a special price of $155. The product normally sells for $216 and has the following manufacturing costs: Direct materiale Diret labor Variable manufacturing overhead Pixed manufacturing overhead Unit cost Per unit $ 55 35 25 45 $160 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. 2 a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? b. Now assume Capitol is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Capitol accepts the order, what effect will the order have on the company's short-term profit?
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