Eley Corporation produces a single product. The cost of producing and

Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the companys normal activity level of 40,000 units per month is as follows: $46.6 $13.3 $0.7 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense $21.4 $1.2 $16.1 The normal selling price of the product is $104.5 per unit. An order has been received from an overseas customer for 1100 units to be delivered this month at a special discounted price. This order would not change the total amount of the companys fixed costs. The variable selling and administrative expense would be $0.6 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 $98.0 per unit. By how much would this special order increase (decrease) the companys net operating income for the month? O $(24,520) O $5,880 0 $40,480 O $(12,520) AnswerNeed Help With Your Assignment?Contact Me I will Do Assignment For Youhwhelp96@gmail.com

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