Assume that ross has sufficient capacity to fill the order


Problem

Ross has received a special order for 16,000 units of its product at a special price of $19. The product normally sells for $23 and has the following manufacturing costs:

                                                     Per unit
Direct materials                                  $ 9
Direct labor                                        6
Variable manufacturing overhead          3
Fixed manufacturing overhead              3
Unit cost                                            $ 21

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

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Accounting Basics: Assume that ross has sufficient capacity to fill the order
Reference No:- TGS02766478

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