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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 94,800 units per year is:
The normal selling price is $25.00 per unit. The company's capacity is 108,000 units per year. An order has been received from a mail-
order house for 1,100 units at a special price of $22.00 per unit. This order would not affect regular sales or the company's total fixed
costs.
Required:
1.What would be the total financial impact of accepting the special order? (Indicate negative cash flows with a negative sign.)
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? (In other words, what is the least they can charge for these units
and not lose money?)
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