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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 of
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 99,600 units per year is: The normal selling price is $22.00 per unit. The company's capacity is 128,400 units per year. An order has been received from a mailorder 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order? Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $63,000 per ton, one-fourth of which is allocated to product X15. Six thousand eight hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $16 each, or processed further at a total cost of $6,100 and then sold for $21 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15 ? 2. Should product X15 be processed further or sold at the split-off point
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