Cranberry Has Received a Special Order for 100 Units of Its

question 21

Multiple Choice

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: Assume 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) $42,000 decrease
• B) $42,000 increase
• C) $70,000 decrease
• D) $28,000 increase

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Definitions:

Quality Codes

Standards or systems used to categorize and ensure the level of quality or integrity of products, processes, or materials.

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A union focused on politics and economics comprising 27 countries primarily situated in Europe.

Euro

The official currency of 19 out of 27 European Union countries, which forms the Eurozone and is one of the largest currencies in the world by value.

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Countries that are members of the European Union, a political and economic union aimed at promoting integration and common policies among member states.