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 53,000 units per month is as follows:

	Per Unit
Direct materials	$	49.10
Direct labor	$	9.40
Variable manufacturing overhead	$	2.40
Fixed manufacturing overhead	$	19.90
Variable selling & administrative expense	$	4.40
Fixed selling & administrative expense	$	21.00

The normal selling price of the product is $112.10 per unit.

An order has been received from an overseas customer for 3,300 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 $2.50 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 $89.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Multiple Choice

• ($67,000)

• $22,110

• $87,780

• ($55,440)