Deita Company produces a single product. The cost of producing and selling a single unit of this product ot the componys normal activity level of 87,600 units per year is The normal selling price is $22.00 per unit. The company's capacity is 116.400 units per year. An order has been received from a mail order house for 2,400 units at a special price of $19.00 per unit. This 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 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 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 is relevant for establishing o minimum selling price for the inferior units? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order? Delta Company produces a single product. The cost of producing and selling a sir activity level of 87,600 units per year is: The normal selling price is $22.00 per unit. The company's capacity is 116,400 unit order house for 2,400 units at a special price of $19.00 per unit. This order would 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 in produced last year and that are inferior to the current model. The units must be sol company does not expect the selling of these inferior units to have any effect on th 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 produced last year and that are inferior to the current model. The units must be sold t prices. The company does not expect the selling of these inferior units to have any effe What unit cost is relevant for establishing a minimum selling price for the inferior units places.) Imperial Jewelers manufactures and sells a gold bracelet for $401,00. The company's accounting system says that the unit product cost for this bracelet is $275.00 as shown below: The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $36100 each. The members of the wedding party would like special fligree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $457 to apply the fiilgree to the bracelets. The special tool would have no other use once the special order is completed To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fxed and unaffected by variations in how much jeweiry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufocturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. What is the finsnciat advantage (disadvantage) of accepting the special order from the wedding party? Imperial Jewelers manulactures and sells a gold bracelet for $401,00. The company's accounting system says that the unit product cost for this bracelet is $275.00 as shown belowe The members of a wedding party have approached Imperial Jewelers about buyling 13 of these gold bracelets for the discounted price of $361,00 each. The members of the wedding porty would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $457 to apply the fligree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by varlations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The compony also believes that accepting this order would have no effect on its ablity to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing copacity: Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Should the company accept the special order
