Delta Company makes a product that normally sells for $40 per unit Delta's records indicate the following per unit costs to make the product: Direct Materials $ 12.00 Direct Labor $ 16.00 Manufacturing Overhead $ 9.00 $ 37.00 An organization has approached Delta offering to buy 300 units of the product at a special price of $34 per unit. Modifications for the special order would increase direct materials by $1.00 per unit. Manufacturing overhead consists of $3.00 per unit of variable costs, with the remainder being fixed and not affected by the special order. Assuming Delta has sufficient excess capacity to take the special order, what is the financial advantage (disadvantage) of taking the order? O (51.800) $600 ($ 300) O $ 300 Beta Company has two divisions Wizards and Wands. Beta is considering discontinuing Wands, due to the division's continuing operating losses. Beta's current income statement is presented below. If Wands is discontinued, all employees of the division will be laid off. General expenses are allocated based on sales dollars and are not directly related to individual product lines Total Wizards Wands Sales $ 1.000.000 $ 800,000 $ 200,000 Variable manufacturing and selling expenses 500.000 350.000 150.000 Contribution Margin $ 500.000 $ 450.000 $ 50.000 Fixed Expenses: Direct (traceable) advertising 28,000 $ 12 000 $ 16,000 Product line managers' salaries 100,000 60,000 40,000 General expenses 90.000 67,500 22.500 Total fixed expenses $ 218.000 $ 139,500 $ 78.500 Net operating income (loss) $ 282,000 $ 310,500 $ ($28,500) The financial advantage (disadvantage) of discontinuing Wands is: O($27.000) ($28,500) $ 28,500 $ 6,000 7:10 PM