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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

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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 93.600 units per year is: The normal selling price is $19.00 per unit. The company's copacity is 127,200 units per year. An order has been recceived trom a mail. order house for 2.800 units at a special price of $16.00 per unit. This order would not affect regular sales or the company's total fixed cost5. Required: 1. What is the financial advantage (disadvantage) of ascepting 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 affect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units

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