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Unformatted text preview: 32. Proxy has received a special order for 1,000 units of its product at a special price of $250. The product currently sells 18,000 units for $300 and has the following manufacturing costs: Per unit Direct materials $ 90 Direct labor 60 Variable manufacturing overhead 75 Fixed manufacturing overhead 50 Unit cost 275 Assume that Proxy has sufficient capacity to fill the order without harming normal production and sales. a. If Proxy accepts the order, what effect will the order have on the companys shortterm profit? (Input the amount as positive value. Omit the "$" sign in your response.) Now assume that Proxy has sufficient capacity to fill 500 units of the order without harming normal sales. b. If Proxy accepts the order and fills it completely, what effect will the order have on the companys shortterm profit? (Input the amount as positive value. Omit the "$" sign in your response.) c. If Proxy accepts the special order, what average price should Proxy charge to make a $20,000...
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This note was uploaded on 06/06/2011 for the course ACC 202 taught by Professor  during the Spring '11 term at SUNY Plattsburgh.
 Spring '11
 

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