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  3. elfalan corporation produces a single product. the

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

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Accounting

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 60,000 units per month is as follows:

Per Unit
Direct materials $ 52.60
Direct labor $ 10.10
Variable manufacturing overhead $ 3.10
Fixed manufacturing overhead $ 21.30
Variable selling & administrative expense $ 5.80
Fixed selling & administrative expense $ 28.00

The normal selling price of the product is $126.10 per unit.

An order has been received from an overseas customer for 4,000 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 $3.20 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 $96.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

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