Pinto Co. has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs: Assume that Pinto Co. has sufficient capacity to fill the order without harming normal production and sales. If Pinto Co. accepts the order, what effect will the order have on the company's short-term profit?
A) $30,000 decrease
B) $30,000 increase
C) $50,000 decrease
D) $20,000 increase

Question

Pinto Co. has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs:  Assume that Pinto Co. has sufficient capacity to fill the order without harming normal production and sales. If Pinto Co. accepts the order, what effect will the order have on the company's short-term profit?
A) $30,000 decrease 
B) $30,000 increase 
C) $50,000 decrease 
D) $20,000 increase

Quizplus · Accepted Answer

The Answer of Pinto Co. has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs:  Assume that Pinto Co. has sufficient capacity to fill the order without harming normal production and sales. If Pinto Co. accepts the order, what effect will the order have on the company's short-term profit?
A) $30,000 decrease 
B) $30,000 increase 
C) $50,000 decrease 
D) $20,000 increase

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