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 $96,000$ units per year is:The normal selling price is $$23\mathrm{.}00$ per unit. The company's capacity is $128,400$ units per year. An order has been received from a mailorder house for $2,700$ units at a special price of $$20\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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What is the financial advantage $($disadvantage$)$ of accepting the special order?

Financial advantage