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Wilson Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's capacity level of 42,000
Wilson Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's capacity level of 42,000 units per month is as follows: Direct materials $43.60 Direct labor..... $8.30 Variable manufacturing overhead. $1.30 Fixed manufacturing overhead... $17.70 Variable selling & administrative expense $2.20 Fixed selling & administrative expense. ..$10.00 The company currently sells 40,000 units at the normal selling price of the product is $90.10 per unit. An order has been received from an overseas customer for 2,200 units to be delivered this month at a special discounted price. The variable selling and administrative expense would be $1.40 less per unit on this order than on normal sales and the special discounted price on the special order is $78.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: ($23,000) $53,000 $35,660 549,080 $35.020 ($14,200) $42.600 $46.740. Cu to and the Alle
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