Assume that xenon has sufficient capacity to fill the order

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Reference no: EM13577957

Xenon has received a special order for 120 units of its product at a special price of $1,850. The product normally sells for $2,350 and has the following manufacturing costs:

	Per unit
Direct materials	$640
Direct labor	340
Variable manufacturing overhead	440
Fixed manufacturing overhead	540
Total cost per unit	$1,960

Assume that Xenon has sufficient capacity to fill the order without harming normal production and sales. If Xenon accepts the order, what effect will the order have on the company's short-term profit?

Reference no: EM13577957

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