Marcy Has Received a Special Order for 2,000 Units of Its

question 107

Essay

Marcy has received a special order for 2,000 units of its product at a special price of $60.The product normally sells for $80 and has the following manufacturing costs:
Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable.
a.If Marcy accepts the order,what effect will the order have on the company's short-term profit?
b.What minimum price should Marcy charge to achieve a $20,000 incremental profit?
c.Now assume Marcy is currently operating at full capacity and cannot fill the order without harming normal production and sales.If Marcy accepts the order,what effect will the order have on the company's short-term profit?

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Definitions:

Thorazine

A medication primarily used to treat psychotic disorders such as schizophrenia, acting as an antipsychotic by blocking dopamine receptors in the brain.

Lithium

A chemical element used as a medication to treat mood disorders such as bipolar disorder by stabilizing mood and reducing extremes in behavior.

Eye Movement Desensitization

A component of Eye Movement Desensitization and Reprocessing (EMDR), a therapeutic technique for reducing the impact of traumatic memories.

Therapeutically Effective

Describes a treatment or intervention that produces a beneficial outcome in the healing of disease or relief of symptoms.