Answer:
A. $3,600 advantage.
Explanation:
<u>Calculating the financial advantage of disadvantage of special order</u>
Increase in revenue (600*$26) $15,600
Less: Increase in direct materials (600*$9) $5,400
Less: Increase in direct labor (600*$4) $2,400
Less: Increase in variable manufacturing $1,200
overhead (600*$2)
Less: Increase in variable selling and $1,200
administrative (600*$2)
Less: Increase in cost for specialized <u>$1,800</u>
material (600*$3)
Financial advantage from special order <u>$3,600</u>