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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 100,800 units per year is: Direct materials Direct labor Variable manufacturing overhead $2.10 $2.00 $0.60 $4.85 Variable selling and administrative expenses Fixed selling and administrative expenses $2.00 $1.00 Fixed manufacturing overhead The normal selling price is $24.00 per unit. The company's capacity is 118,800 units per year. An order has been received from a mail- order house for 1,500 units at a special price of $21.00 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 What is the financial advantage (disadvantage) of accepting the special order? Financial advantage 31,500 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 100,800 units per year is: Direct materials Direct labor Variable manufacturing overhead $2.10 $2.00 $0.60 $4.85 Variable selling and administrative expenses Fixed selling and administrative expenses $2.00 $1.00 Fixed manufacturing overhead The normal selling price is $24.00 per unit. The company's capacity is 118,800 units per year. An order has been received from a mail- order house for 1,500 units at a special price of $21.00 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 What is the financial advantage (disadvantage) of accepting the special order? Financial advantage 31,500
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