Elfalan Corporationproduces a single product. The cost of producing and selling asingle unit of...Elfalan...

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Accounting

Elfalan Corporationproduces a single product. The cost of producing and selling asingle unit of this product at the company's normal activity levelof 45,000 units per month is as follows:
Per Unit
Directmaterials $ 45.10
Directlabor $ 8.60
Variablemanufacturing overhead $ 1.60
Fixedmanufacturing overhead $ 18.30
Variable selling& administrative expense $ 2.80
Fixed selling& administrative expense $ 13.00
The normal sellingprice of the product is $96.10 per unit.
An order has beenreceived from an overseas customer for 2,500 units to be deliveredthis month at a special discounted price. This order would notchange the total amount of the company's fixed costs. The variableselling and administrative expense would be $1.70 less per unit onthis order than on normal sales.
Direct labor is avariable cost in this company.
Suppose there is ampleidle capacity to produce the units required by the overseascustomer and the special discounted price on the special order is$81.40 per unit. The monthly financial advantage (disadvantage) forthe company as a result of accepting this special order shouldbe
Multiple Choice
($35,000)
$16,750
$62,500
($20,000)

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In: AccountingElfalan Corporationproduces a single product. The cost of producing and selling asingle unit of...Elfalan Corporationproduces a single product. The cost of producing and selling asingle unit of this product at the company's normal activity levelof 45,000 units per month is as follows:Per UnitDirectmaterials$45.10Directlabor$8.60Variablemanufacturing overhead$1.60Fixedmanufacturing overhead$18.30Variable selling& administrative expense$2.80Fixed selling& administrative expense$13.00The normal sellingprice of the product is $96.10 per unit.An order has beenreceived from an overseas customer for 2,500 units to be deliveredthis month at a special discounted price. This order would notchange the total amount of the company's fixed costs. The variableselling and administrative expense would be $1.70 less per unit onthis order than on normal sales.Direct labor is avariable cost in this company.Suppose there is ampleidle capacity to produce the units required by the overseascustomer and the special discounted price on the special order is$81.40 per unit. The monthly financial advantage (disadvantage) forthe company as a result of accepting this special order shouldbeMultiple Choice($35,000)$16,750$62,500($20,000)

	Per Unit
Directmaterials	$	45.10
Directlabor	$	8.60
Variablemanufacturing overhead	$	1.60
Fixedmanufacturing overhead	$	18.30
Variable selling& administrative expense	$	2.80
Fixed selling& administrative expense	$	13.00