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3. Special Orders (1.5pts): Dog Man Donuts, Inc. makes and sells pre-packaged donuts. Each pre-packaged box of donuts regularly sells for $8.00 each. The firm
3. Special Orders (1.5pts): Dog Man Donuts, Inc. makes and sells pre-packaged donuts. Each pre-packaged box of donuts regularly sells for $8.00 each. The firm typically produces and sells 1,600 boxes each month, which is 80% of capacity (i.e. capacity is 2,000 boxes). At a production level of 1,600 boxes, the costs per box is as follows: Per box Direct materials S 0.85 Direct labor S 1.05 Variable OH $ 0.95 Fixed OH $ 1.70 Variable Selling & Admin $ 1.20 Fixed Selling & Admin $ 0.65 Total $ 6.40 A special order has been received by the firm from a customer for production and sale of 200 boxes to this customer for $6.00 each. The Variable Selling & Admin costs that would be incurred on this special order would still be $1.20 for packaging and shipping. Assume that the firm's Fixed OH and Fixed Selling & Admin costs would not be affected by this special order. Calculate the financial advantage (disadvantage) for the company if it were to accept this special order
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