Elfalan Corporation Produces a Single Product

question 357

Multiple Choice

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 52,000 units per month is as follows: The normal selling price of the product is $110.10 per unit.An order has been received from an overseas customer for 3,200 units 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 $2.40 less per unit on this order than on normal sales.Direct labor is a 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 $88.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

• A) ($63,000)
• B) $21,440
• C) $84,480
• D) ($50,240)

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical parameter in assessing cardiovascular health.

Pulse Pressure

The difference between the systolic and diastolic blood pressure readings, which can provide insights into the health of the cardiovascular system.

Systolic Pressure

This refers to the pressure in your arteries when your heart beats and pumps blood.

Diastolic Pressure

The lower number in a blood pressure reading, indicating the pressure in the arteries between heartbeats.