Delta Company produces a single product The cost of producing and selling a single unit of this product at the companys normal activity level of 87,600 units per year is Direct materials $ 1 90 Direct labor $ 3 00 Variable manufacturing overhead $ 90 Fixed manufacturing overhead $ 4 35 Variable selling and administrative expenses $ 1 70 Fixed selling and administrative expenses $ 2 00 The normal selling price is $18 per unit The companys capacity is 109,200 units per year An order has been received from a mail order house for 1,800 units at a special price of $15 00 per unit This order would not affect regular sales Required 1 If the order is accepted, by how much will annual profits be increased or decreased (The order will not change the companys total fixed costs ) 2 Assume the company has 500 units of this product left over from last year that are inferior to the current model The units must be sold through regular channels at reduced prices What unit cost is relevant for establishing a minimum selling price for these units (Round your answer to 2 decimal places ) 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 87,600 units per year is Direct materials 1 90 Direct labor 3 00 Variable manufacturing overhead 4 35 Fixed manufacturing overhead Variable selling and administrative $1 70 expenses Fixed selling and administrative expenses $2 00 The normal selling price is $18 per unit The company's capacity is 109,200 units per year An order has been received from a mail order house for 1,800 units at a special price of $15 00 per unit This order would not affect regular sales Required 1 If the order is accepted, by how much will annual profits be increased or decreased The order will not change the company's total fixed costs Annual profits woul 2 Assume the company has 500 units of this product left over from last year that are inferior to the current model The units must be sold through regular channels at reduced prices What unit cost is relevant for establishing a minimum selling price for these units (Round your answer to 2 decimal places ) Relevant cost per unit

Question

Delta Company produces a single product  The cost of producing and selling a single unit of this product at the companys normal activity level of 87,600 units per year is  Direct materials $ 1 90 Direct labor $ 3 00 Variable manufacturing overhead $  90 Fixed manufacturing overhead $ 4 35 Variable selling and administrative expenses $ 1 70 Fixed selling and administrative expenses $ 2 00 The normal selling price is $18 per unit  The companys capacity is 109,200 units per year  An order has been received from a mail order house for 1,800 units at a special price of $15 00 per unit  This order would not affect regular sales  Required  1  If the order is accepted, by how much will annual profits be increased or decreased  (The order will not change the companys total fixed costs ) 2  Assume the company has 500 units of this product left over from last year that are inferior to the current model  The units must be sold through regular channels at reduced prices  What unit cost is relevant for establishing a minimum selling price for these units  (Round your answer to 2 decimal places ) 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 87,600 units per year is  Direct materials 1 90 Direct labor 3 00 Variable manufacturing overhead 4 35 Fixed manufacturing overhead Variable selling and administrative $1 70 expenses Fixed selling and administrative expenses $2 00 The normal selling price is $18 per unit  The company's capacity is 109,200 units per year  An order has been received from a mail order house for 1,800 units at a special price of $15 00 per unit  This order would not affect regular sales  Required  1  If the order is accepted, by how much will annual profits be increased or decreased  The order will not change the company's total fixed costs Annual profits woul 2  Assume the company has 500 units of this product left over from last year that are inferior to the current model  The units must be sold through regular channels at reduced prices  What unit cost is relevant for establishing a minimum selling price for these units  (Round your answer to 2 decimal places ) Relevant cost per unit

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Delta Company produces a single product. The cost of producing and selling a single unit of this product at the companys normal activity level of

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Direct materials	$	1.90
Direct labor	$	3.00
Variable manufacturing overhead	$	.90
Fixed manufacturing overhead	$	4.35
Variable selling and administrative expenses	$	1.70
Fixed selling and administrative expenses	$	2.00