Chang Industries has received a special order for 1.000 units of its product at a...
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Chang Industries has received a special order for 1.000 units of its product at a special price of $18. The product normally sells for $21 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 7.00 3.60 4.40 5.00 $ 20.00 Assume that Chang Industries has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. If Chang Industries accepts the order, how much will the company's short-term profit increase? Refer to Question 31 (Chang Industries). What minimum price should Chang Industries charge to make a $4,000 Incremental profit? QUESTION 33 Refer to Question 31 (Chang industries) Now assume that Chang Industries is currently operating at full capacity and cannot fill the order without harming normal production and sales. Ir Chang Industries accepts the order, how much will the company's short-term profit decrease
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