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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

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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 50,000 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 $47.60 $ 9.10 $ 2.10 $19.30 $ 3.80 $18.00 The normal selling price of the product is $106.10 per unit. An order has been received from an overseas customer for 3,000 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 $2.20 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 $86.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice 520300

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