Check my Elfalan Corporation produces a single product. The cost of producing and selling a...
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Accounting
Check my 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 53,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense Per Unit $ 49.10 $ 9.40 $ 2.49 $ 19.90 $ 4.40 $ 21.00 The normal selling price of the product is $112.10 per unit. An order has been received from an overseas customer for 3,300 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 $2.50 less per unit on this order than on normal sales. Direct labor is a variable cost in this company, Check The normal selling price of the product is $112.10 per unit. An order has been received from an overseas customer for 3,300 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 $2.50 less per unit on this order than on normal sales, Direct labor is a variable cost in this company o in 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 $89.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice O ($67,000) $22,110 O O $87,780 O ($55,440) Prev



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