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Delta Company makes a product that normally sells for $40 per unit. Delta's records indicate the following per unit costs to make the product: Direct
Delta Company makes a product that normally sells for $40 per unit. Delta's records indicate the following per unit costs to make the product: Direct Materials Direct Labor Manufacturing Overhead $ 12.00 $ 16.00 $ 9.00 $ 37.00 An organization has approached Delta offering to buy 300 units of the product at a special price of $34 per unit. Modifications for the special order would increase direct materials by $1.00 per unit. Manufacturing overhead includes $6.00 per unit of variable costs, with the remainder being fixed and not affected by the special order. Assuming Delta has sufficient excess capacity to take the special order, what is the financial advantage (disadvantage) of taking the order? O ($1,800) O $ 600 O ($ 300) O $ 300
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