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Portland Industries manufactures a product with the following costs per unit at the expected production of 30,000 units: Direct materials $ 10 Direct labor $

Portland Industries manufactures a product with the following costs per unit at the expected production of 30,000 units:

Direct materials $ 10
Direct labor $ 15
Variable manufacturing overhead $ 8
Fixed manufacturing overhead (allocated common costs) $ 10

The company has the capacity to produce 60,000 units. The product regularly sells for $45. A new potential customer has offered to purchase 2,000 units for $30 each.

What is the financial advantage (disadvantage) if Portland Industries accepts the special order?

Financial disadvantage of ($26,000)

Financial advantage of $60,000

Financial advantage of $10,000

Financial disadvantage of ($6,000)

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