Cranberry Has Received a Special Order for 100 Units of Its

question 85

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:

Socialism

An economic system in which the government owns and operates basic industries but individuals own most businesses.