Cranberry has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,800 and has the following manufacturing costs: Per unitDirect materials $840Direct labor 420Variable manufacturing overhead 560Fixed manufacturing overhead 700Unit cost $2,520Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit?
A. $28,000 increase
B. $42,000 increase
C. $42,000 decrease
D. $70,000 decrease
Answer: A
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