Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per month is as follows:

The normal selling price of the product is $126.10 per unit.

An order has been received from an overseas customer for 4,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $3.20 less per unit on this order than on normal sales.

Direct labor is a variable cost in this company.

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $96.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

112,000

(98000)

26,800

(102,000)

Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense Per Unit $ 52.60 $ 10.10 $ 3.10 $ 21.30 $ 5.80 $ 28.00