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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
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 103,200 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses 1.00 $ 1.60 $ 2.00 $ .90 4.95 The normal selling price is $24 per unit. The company's capacity is 126,000 units per year. An order has been received from a mail-order house for 1,900 units at a special price of $21.00 per unit. This order would not affect regular sales
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