Almond has received a special order for 13,000 units of its product at a special price of $50. The product normally sells for $61 and has the following manufacturing costs:
| |
Per unit |
| Direct materials |
$18 |
| Direct labor |
14 |
| Variable manufacturing overhead |
10 |
| Fixed manufacturing overhead |
8
|
| Unit cost |
$50
|
Assume that Almond has sufficient capacity to fill the order. If Almond accepts the order, what effect will the order have on the company's short-term profit?