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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 norr 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 norr activity level of 90.000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 1.80 $ 2.80 $ 0.90 $ 45 $ 1.50 $ 100 The normal selling price is $21.00 per unit. The company's capacity is 105.600 units per year. An order has been received from a order house for 1.300 units at a special price of $18.00 per unit. This order would not affect regular sales or the company's totalf costs. Required: 1 What is the financial advantage (disadvantage) of accepting the special order? 2 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. company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? Required 2 7 lel. The units must be sold through regular channels a ompany does not expect the selling of these inferior units to have any effect on the sales of its current model. elevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product tha produced last year and that are inferior to the current model. The units must be sold through regular channels at redu prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current m What unit cost is relevant for establishing a minimum selling price for these units? (Round your answer to 2 decimal p Show Relevant cost per unit Required 1
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