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 108,000 units per year is: Direct matenals $ 1.50 Direct labor $ 2.00 Variable manufacturing overhead $ .60 Fixed manufacturing overhead $ 455 Variable selling and administrative expenses $ 1.30 Fixed selling and administrative expenses $1.00 The normal selling price is 525 per unit. The company's capacity is 138,000 units per year. An order has been received from a mail-order house for 2,500 units at a special price of $22.00 per unit. This order would not affect regular sales Required: 1. if the order is accepted by how much will annual profits be increased or decreased? (The order will not change the company's total fixed costs.) Annual profits would by 2. Assume the company has 500 units of this product left over from last year that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? (Round your answer to 2 decimal places.) Relevant cost per unit