Business, 15.12.2020 17:00 musoke25p8zrsw

Elfalan 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 47,000 units per month is as follows:Per UnitDirect materials$46.10Direct labor$8.80Variable manufacturing overhead$1.80Fixed manufacturing overhead$18.70Variable selling & administrative expense$3.20Fixed selling & administrative expense$15.00The normal selling price of the product is $100.10 per unit. An order has been received from an overseas customer for 2,700 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 $1.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. 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 $83.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:A. $18,090B. ($27,540)C. $68,580D. ($43,000)

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Elfalan Corporation produces a single product. The cost of producing and selling a single unit of th...

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