Question
4 Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company's normal activity
4 Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company's normal activity level of 106,800 units per year is I Direct labor Variable manufacturing $1.00 The normal seling price is $2000 per une. The company's capacity is 141,600 units per year. An order has been received from a mal order house for 2.900 units at a special price of $17.00 per unit. The order would not affect regular sales or the company's total fixed costs Required: 1. What is the financial advantage (disadvantage) of accepting the special order 2. As a separate matter from the special order, assume the company's inventory includes 1000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model What unit cost relevant for establishing a minimum selling price for the inferior units? Complete this question by entering your answers in the tabs below. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduce prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model what unit cost is relevant for establishing a minimum selling price for the inferior units (Round your answer to 2 decimal >>
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