16. Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $18, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost An outside supplier has offered to provide the annual requirement of 4,000 of the parts for only $14 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: purchased from the outside supplier. Assume that direct labor is an A. ($1) per unit on average B. $1 per unit on average C. $2 per unit on average D. ($4) per unit on average 17. Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Per Unit 22.50 $ 7.50 S 1.70 $ 19.00 S 2.70 $ 8.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overbead Variable selling& administrative expense Fixed selling & administrative expense The normal selling price of the product is $67.80 per unit An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $60.60 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: A. ($4,200) B. $84,300 C. ($15,900) D. $27,300