Question: Direct materials $ 1.90 Direct labor $ 3.00 Variable manufacturing overhead $ 0.70 Fixed manufacturing overhead $ 3.25 Variable selling and administrative expense $ 1.30

Direct materials $ 1.90 Direct labor $ 3.00 Variable manufacturing overhead $ 0.70 Fixed manufacturing overhead $ 3.25 Variable selling and administrative expense $ 1.30 Fixed selling and administrative expense $ 2.00 The normal selling price is $22.00 per unit. The companys capacity is 139,200 units per year. An order has been received from a mail-order house for 2,700 units at a special price of $19.00 per unit. This order would not affect regular sales or the companys total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the companys inventory includes 1,000 units of this product that were produced last

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