Nordic Company makes a semi-finished machine component for the heavy equipment industry that has a unit contribution margin of $100 to Nordic. A major customer has been purchasing 500 units per month from Nordic for many years, but has indicated that it would prefer to purchase them already machined to its specifications. It has offered to pay an additional $25 per unit for the finished units. To meet those specifications, Nordic would have to incur labor and other direct costs of $15 per unit. Calculate the per-unit advantage or disadvantage of further processing.

Group of answer choices

$10 disadvantage

$35 advantage

$10 advantage

$20 advantage