Exam 84 (Chs 10,12) 150 pts Due: June 16 Help Save&Exit; Subm TB MC Qu. 12-136 E

Question

Exam 84 (Chs 10,12) 150 pts Due: June 16 Help Save&Exit; Subm TB MC Qu. 12-136 Elfalan Corporation produces a single product... 6 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 52,000 units per month is as follows Per Unit 48.60 9.30 2.30 19.70 points 2s0ss Direct materiala Direct labor Variable sanufacturing overhead Fixed nanafacturing overhead Variable selling & adniniatrative expenso 4.20 Fixed selling& adninistrative expense 5 20.00 The normal selling price of the product is S10.10 per unit An order has been received from an overseas customer for 3,200 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fxed costs. The varabile Direct labor is a variable cost in this company discounted there is ample i dle capacity to produce the units required by the overseas customer and the special price on the special order is $88.40 per unit The monthly fnancial advantage (disadvantape) for the of accepting this special oeder should be: company as a result Mutiple Choice $21.440 may not be exchanged or retumed 912 Fn FO F7 FO F5 Backspace

Explanation / Answer

The answer is $ 84,480

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Per Units Special Order No. of Units            88.40                 3,200 Sales             282,880 Cost: Direct Material            48.60          (155,520) Direct Labour              9.30             (29,760) Variable Manufacturing OH              2.30               (7,360) Variable Selling Expenses              1.80               (5,760) Net Advantage               84,480

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