Question: Sunset Company has received a request for a special order of 5,000 units of product T210 for $14.00 each. The regular selling price of

Sunset Company has received a request for a special order of 5,000

Sunset Company has received a request for a special order of 5,000 units of product T210 for $14.00 each. The regular selling price of this product is $27.00. The unit product cost is $20.60, determined as follows: Direct materials $2.00 Direct labor Fixed manufacturing overhead Total unit product cost 8.20 Variable manufacturing overhead 2.80 7.60 $20.60 Direct materials and direct labor are variable costs. The special order would have no effect on the company's total fixed manufacturing overhead costs. This special order would also have no effect on the company's other sales. The company has the capacity for producing the special order. What would be the financial advantage or disadvantage of accepting the special order?

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