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 60,000 units per year is: $ $ Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed manufacturing overhead Fixed selling and administrative expense $ S $ 5.10 3.80 1.00 1.50 Note 1 4.20 2.40 2 Delta has provided the following additional information: Selling price to regular customers 5 Maximum capacity in units Current production level in units (normal activity level) 7 $ 21.00 70,000 60,000 A special order has been received with the following details: Units in special order Selling price to special order customer Note 1: There will be no variable selling costs incurred for the special order. 15,000 $18.00 Management has asked you for your assistance in deciding whether or not the special order should be accepted Required: Calculate the following: Regular Customer Special Order Customer a. Variable cost per unit ebContribution margin per unit 1 Using your answers to part a and b, calculate the following c. If the company decides to take on the special order, how many units will they 2 NOT be able to sell to their regular customers? d. Total Contribution margin earned from special order (for the entire special B3 order) 24 e Opportunity cost (if any) - show as positive number 35 f increase (decrease) in operating income 36 37 g Should the special order be accepted based on quantitative factors? 38 39 h. Why or why not? (1 mark) D h. Why or why not? (1 mark) 1. Name one qualitative factor that management should consider prior to accepting a special order? (1 mark) 3 1