Delta Company produces a single product. The cost of producing and selling a single unit of this product at the companys normal activity level of 99,600 units per year is:

The normal selling price is $21 per unit. The companys capacity is 124,800 units per year. An order has been received from a mail-order house for 2,100 units at a special price of $18.00 per unit. This order would not affect regular sales.

Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $ 1.60 Fixed selling and administrative expenses 2.00 $1.90 3.00 $ 1.00 $ 4.55