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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 90,000 units per year is: The normal selling price is $18.00 per unit. The company's capacity is 117.600 units per year An order has been recelved from a mailorder house for 2,300 units at a special price of $15.00 per unit. This order would not affect regular sales or the company's total fixed conte: Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a seporate matter from the special order, assume the company's inventory includes 1,000 units of this product thot were produced last year and that are inferior to the cutrent 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 effect on the soles of its current model. What unit cost is relevent for establishing o minimum selling price for the inferior units? Complete this question by entering vour answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order? Complete this question by entering vour onswers in the tabs below. As a separate matter from the special order, assume the company's inventory indudes 1,000 units of this product that wert produced last year and that are inferior to the current model. The units must be sold through regular channets at reduced Whar unit cost is relevant for establishing a minimum selling price for the inferior units? Note: Preufid your answer to 2 decimal. placeits

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