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Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60.000 units per year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $5.10 $ 3.80 $1.00 $4.20 $1.50 $2.40 The normal saling price is $21 per unit. The company's capacity is 75,000 units per year Ari order has been received from a mail-order house for 15.000 units at a special price of $14.00 per unit. This order would not affect regular sales or total foed costs Required: 1 What is the financial advantage (disadvantage) of accepting the special order?
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