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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 87,600 units per year is Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $ 1.70 Fixed selling and administrative expenses $ 2.00 $ 1.70 $3.00 $ .50 5.15 The normal selling price is $25 per unit. The company's capacity is 114,000 units per year. An order has been received from a mail-order house for 2,200 units at a special price of $22.00 per unit. This order would not affect regular sales Required: 1. If the order is accepted, by how much will annual profits be increased or decreased? (The order will not change the company's total fixed costs.) Annual profits would
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