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The content . 16.01 18.00 1,10 BOLT WOW - TB MC Qu. 13-136 (Algo) Elfalan Corporation produces a single product... Elolan Corporation produces a single
The content . 16.01 18.00 1,10 BOLT WOW - TB MC Qu. 13-136 (Algo) Elfalan Corporation produces a single product... Elolan 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: Per Unit Direct materials $ 47.60 Direct labor $ 9.10 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 19.30 Variable selling 6 administrative expense $ 3.80 Fixed selling administrative expense $ 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 laboris 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 $86.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be
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