Walnut has received a special order for 2700 units of its


Question: Walnut has received a special order for 2,700 units of its product at a special price of $200. The product normally sells for $260 and has the following manufacturing costs: Per unit Direct materials $ 64 Direct labor 34 Variable manufacturing overhead 44 Fixed manufacturing overhead 103 Unit cost $ 245 Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the company's short-term profit? $162,000 decrease $121,500 increase $121,500 decrease Zero

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Finance Basics: Walnut has received a special order for 2700 units of its
Reference No:- TGS02876722

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