Question: ompany makes a single product that is sells for $60/unit. It has the capacity to produce 100,000 units per year, but currently produces only 70,000.

ompany makes a single product that is sells for $60/unit. It has the capacity to produce 100,000 units per year, but currently produces only 70,000. Per-unit costs associated with the product at an annual production level of 70,000 are below:

Variable production cost per unit $10

Fixed production cost per unit $12

Variable selling cost per unit $4

Fixed selling cost per unit $13

A foreign distributor wants to buy 20,100 units for a selling price of $44 each. If the company accepts this order, it would incur $12,204 in additional legal costs to comply with export regulations. No selling costs would be incurred for this order. What is the total financial advantage or disadvantage of accepting this offer? (Make sure to calculate the total, and not the per-unit amount; Round to the nearest dollar; Use a positive number to indicate an advantage and a negative number to indicate a disadvantage.)

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