A customer has requested that L Corporation fill a special order for 2,300 units of product R35 for $28 a unit. While the product would be modified slightly for the special order, product R35's normal unit product cost is $21.80: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit product cost $ 5.90 5.00 3.00 7.90 $21.80 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product R35 that would increase the variable costs by $1.50 per unit and that would require an investment of $13,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice $15.980 O (52100) $13,200 ($12,700) Which of the following is true about an opportunity cost? Multiple Choice . should never be considered in decision-making. they are recorded in the accounting records of the company, Is a cost that has already been incurred and can not be changed by any decision Is the potential benefit given up when one alternative is selected over another L Corporation produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice $20.500 550,600) $50.600 (353.400)