Answer: See explanation

Explanation:

a. The variable cost per unit will be:

= (3,825,000 - 3,680,000) / (45million - 40 million)

= 0.029

Then, the financial order of accepting the order will be:

Contribution margin = Unit selling price - Unit

= 65 - 29

= 36

Since the size of the order is 100,000, the financial impact of accepting the order will be:

= 36 × 100,000

= 3,600,000

b. The differential analysis will be:

Contribution from special order = 3,600,000

Opportunity cost {100,000 = 120,000,000 - 29,000,000 = 9,100,000

Net disadvantage of accepting order will then be:

= 3600000 - 9100000

= 5,500,000