Question: Lipe Corporation has received a request for a special order of 6,000 units of product QRS for $24 each. Lipes regular per unit price for

Lipe Corporation has received a request for a special order of 6,000 units of product QRS for $24 each. Lipes regular per unit price for QRS is $27 and the per-unit cost is $20, as shown:

Direct materials	$9
Direct labor	6
Variable manufacturing overhead	1
Fixed manufacturing overhead	4
Unit product cost	$20

Lipe has sufficient capacity to take the order without disrupting sales to its regular customers. The company believes the order will have no effect on the company's existing fixed manufacturing overhead costs, but it would have to buy a new piece of equipment to slightly modify the products shape. The equipment costs $12,000 and would have no future use.

The financial advantage (disadvantage) of taking the special order is:

Multiple Choice

$12000
$36000
$(18000)
$48000

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