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ACHS Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level 56,000

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ACHS Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level 56,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling 6 administrative expense Fixed selling a administrative expense Per Unit $50.60 $ 9.70 $ 2.70 $20.50 $ 5.00 $24.00 The normal selling price of the product is $118.10 per unit. An order has been received from an overseas customer for 3,600 units to be delivered this month at a special discounted price of $92.40 per unit. The variable selling and administrative expense would be $2.80 less per unit on this order thare on normal sales. This order would not change the total amount of the company's fixed costs and direct labor is a variable cost in this company Suppose there is ample idle capacity to produce the units required by the overseas customer the monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice O ($82,000) O ($72,360) $24,120 O ($97.920) $97,920 George Lucas Corporation manufactures and sells a number of products, including a product called Tatooine. Results for last year for the manufacture and sale of Tatooines are as follows: $ 960,000 3:50 Salen to expenses Variable production conta Sales commissions Salary of product manager Fixed product advertising Pixed manufacturing overhead Net operating lous $464,000 144,000 100,000 160.000 132,000 1,000,000 $(40,000) George Lucas is trying to decide whether to discontinue the manufacture and sale of Tatooines. All expenses other than fixed manufacturing overhead ore avoidable of the product is dropped. None of the food manufacturing overhead is avoidable Assume that dropping Product Tatooine will have no effect on other products. The annual financial advantage (disadvantage) for the company of eliminating this product should be

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