The normal selling price of the product is $122.10 per unit. an order has been received from an overseas customer for 3,800 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 $3.00 less per unit on this order than on normal sales. suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $94.40 per unit. the monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:
$92,000
$25,460
$104,880
$84,740

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?