The financial advantage amounts to $40,000. To determine the relevant variable cost, we can calculate it as follows: Unit variable cost = 130 + 20 = 150. The revenue from the special order (200 × $350) equals 70,000. The variable cost (200 × 150) is 30,000. Thus, the financial advantage totals 40,000. It's important to note that fixed manufacturing and selling costs have been excluded from this analysis since they remain constant regardless of the acceptance of the special order.
