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Delta Company produces a single product. The cost of producing and seting a single unt of this product st the company's normal activity level of

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Delta Company produces a single product. The cost of producing and seting a single unt of this product st the company's normal activity level of 85,200 units per year is: The normal selling price is $19.00 per unit. The company's capacity is 98,400 units per year. An order has been received from a mailorder house for 1,100 units at a special price of $16.00 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? 2. As a separate matter from the special order, assume the company's inventory includos 1000 unlts of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels ot reduced prices. Th 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. What is the financial advantage (disadvantage) of accepting the special order? Vartable anliing and actaifilttrative expensea 5.20 Fixed tolling atd adeinfatrative expension $3.66 The normal selling price is 51900 per unit. The company/s capacity is 38.400 units per year, An onder has been recelved from a mail. order house for 1,100 units at a special price of $16.00 per unit. This order would not affect regular 5 ales or the company's total fixed costs. Required: 1. What is the financial actvantage fdisadvantage of accepting the special order? 2. As a separate matter from the special order, assume the compary's inventocy includes 1,000 urils of this product that were produced last year and that are inferioe to the current model. The units must be soid through regular channek at reduced prices. fhe company does not expect the selliny of these inferior units to have arry 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. As a separate matter from the special arder, assume the company's inventory inctudes 1,000 units if this product that were jroduced last year and that are inferior to the current model, The units must be soid through regular charinels at reduced prices. The compary does not expect the selling of these inferior units to have any effect on the sales of its current medel. What unit cost is relevant for establishing a minimum seding price for these units? (Round your answer to 2 decimal places.)

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