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E Corporation produces a single product. The cost of producing and selting a single unit of this product at the companys normal activity level of

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E Corporation produces a single product. The cost of producing and selting a single unit of this product at the companys normal activity level of 43,000 units per month is as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense Unit 44.1 5 8.48 5 1.40 $ 17.98 5 2.40 $11.00 The norma al selling price of the product is $92 10 per unt An order has been receved from an overseas customer for 2,300 units to be delivered this month at a special discounted price This order would not change the total amount or the company's fixed costs. The variable selling and administrative expense would be $1.50 less per unit on this order than on normal sales Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted $79.40 per unit. The monthly financial price on the special order is advantage (disadvantage) for the company as a result of accepting this special order should be Multiple Choice

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