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Elfa lan Corporation produces a single product. The cost of producing and selling a single unit of this procluct at the company's normal actity level
Elfa lan Corporation produces a single product. The cost of producing and selling a single unit of this procluct at the company's normal actity level of 41,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling administrative expense Fixed selling & administrative expense Per Unit $43.10 $ 8.20 $ 1.20 $17.50 $ 2.00 $ 9.00 The normal selling price of the product is $88.10 per unit. An order has been received from en overseas customer for 2.100 units to be delivered this month at a special discounted price. This order would not change the total amount of the companys fixed costs. The variable selling and administrative expense would be $1.30 less per unit on this order than on normal sales. Direct labor is a variable cost in this company Suppose there is emple idle capacity to produce the units required by the overseas customer and the special cliscounted price on the special order is $77.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be Multiple Choice IS20.000 $14,070 550,320 $2.50
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