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Elfalan Corporation produces a single product. The cost of producing and selling asingle unit of this product at the company's normal activity level of 48,000


image text in transcribed Elfalan Corporation produces a single product. The cost of producing and selling asingle unit of this product at the company's normal activity level of 48,000 unitsper month is as follows:Per UnitDirect materials$ 46. 60Direct labor$ 8.90Variable manufacturing overhead$ 1. 90Fixed manufacturing overhead$ 18. 90Variable selling & administrative expense$ 3. 40Fixed selling & administrative expense$ 16. 00The normal selling price of the product is $102.10 per unit.An order has been received from an overseas customer for 2,800 units to bedelivered this month at a special discounted price. This order would not changethe total amount of the company's fixed costs. The variable selling andadministrative expense would be $2.00 less per unit on this order than on normalsales.Direct labor is a variable cost in this company.Suppose there is ample idle capacity to produce the units required by theoverseas customer and the special discounted price on the special order is$84.40 per unit. The monthly financial advantage (disadvantage) for the companyas a result of accepting this special order should be

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