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Assume that xenon has sufficient capacity to fill the order

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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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