?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 $91,200$ ?units per year is:

The normal selling price is $$21\mathrm{.}00$ ?per unit. The company's capacity is $105,600$ ?units per year. An order has been received from a mail$-$

order house for $1,200$ ?units at a special price of $$18\mathrm{.}00$ ?per unit. This order would not affect regular sales or total fixed costs.

Required:

What is the financial advantage $($disadvantage$)$ ?of accepting the special order?

As a separate matter from the special order, assume the company's inventory includes $1,000$ ?units that are inferior quality. The units

must be sold through regular channels at a reduced price. The company does not expect the selling of these inferior units to affect

regular sales. What unit cost is relevant for establishing a minimum selling price for the inferior units?

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