Elfalan Corporation produces a single product. The cost of producing and setting a ungle unt of this product at the company's normal activity level of 50,000 units per month is as follows Pec Unit $22.50 $2.50 $1.20 $ 29,00 $2.70 $ 8.60 Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense The normat setting price of the product is $6700 per un An order has been received from an overseas customer for 3,000 unts 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 $190 less per unit on this order than on normal sales Direct labor k 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 $60.60 per unit. The money financial advantage (disadvantage) for the company as a result of accepting this special order should be
Elfalan Corporation produces a single product. The cost of producing and setting a ungle unt of this product at the company's normal activity level of 50,000 units per month is as follows Pec Unit $22.50 $2.50 $1.20 $ 29,00 $2.70 $ 8.60 Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense The normat setting price of the product is $6700 per un An order has been received from an overseas customer for 3,000 unts 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 $190 less per unit on this order than on normal sales Direct labor k 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 $60.60 per unit. The money financial advantage (disadvantage) for the company as a result of accepting this special order should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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