Delta Company produces a single product. The cost of producing and seling a single unit of this product at the company's normal activity level of 106,800 units per year is: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.40 $ 3.00 $ 0.60 $ 5.15 $1.30 $2.00 The normal selling price is $20.00 per unit. The company's capacity is 130,800 units per year. An order has been received from a mail- order house for 2,000 units at a special price of $17.00 per unit. This order would not affect regular soles or the company's total fixed costs Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage of accepting the special order? Required Required 2 > Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced price company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost i relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? (Round your answer to 2 decimal places.) Show less Relevant cost per unit
