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SO CRIT Wayfair Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity
SO CRIT Wayfair 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 59,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling a administrative expense Fixed selling - administrative expense Por Unit $52.10 $10.00 $ 3.00 $21.10 $ 5.60 $27.00 The normal selling price of the product is $124 10 per unit. An order has been received from an overseas customer for 3.900 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 $3 10 less per unit on this order than on normal sales Direct labor is a variable cost in this company Suppose there is ample de capacity to produce the units required by the overseas customer and the special discounted price on the special order is $95.40 per unit. The monthly financial advantage (disadvantage) for the compariy as a result of accepting this special order should be Multiple Choice $108.420 O. $26,130 ($91,260) ($97,000)
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