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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 92,400 units per year is: The normai selling price is $25.00 per unit The company sapacity is 109,200 units per year. An order has been received from a maikorder house for 1.400 units at a special price of $22.00 per unit This order would not affect regular sales or the company's fotal fixed costs: Required: 1. What is the financial advantage (disadvantage) of accepting the special ordet? 2. As a separate matter from the special order, assume the company's inventory includes t,000 units of this product mat were produced last year and that are inferior to the current model. The units must be sold through reqular channelis at reduced pricts The company does not expect the selling of these inferior units to have any effect on the sales of its current model What unit sort is relevant for establishing a minimum selling price for the infenor units? Complete this question by entering your answers in the tabs below
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