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 seling price is $19.00 per unit. The company's capacity is 121,200 units per year. An order has been received from a matiorder house for 2,200 units at a special price of $16.00 per unit. This order would not affect regular sales or the company's total fixed 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. The 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 the inferior units? Complete this question by entering your answers in the tabs below. What is the financlal advantage (disadvantage) of accepting the special order? Delta Company produces a single product. The cost of producing and selling a single unt of this product at the companys normal activity level of 94,800 units per year is: The normal selting price is $19.00 per unit. The company's capacity is 121,200 units per year. An order has been recelved from a mail order house for 2,200 units at a special price of $16.00 per unit. This order would not affect regular sales or the company/s total fixed costs Required: 1. What is the financial advontage (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 reguiar channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of is current model. What unit cost is relovent for establishing a minimum selting price for the inferior units? Complete this question by entering your answers in the tabs below. At a separate matter from the spedal ordec, assume the company's inventory inciudes 1,000 inits of thls product that were prodveed last year and that are inferior to the current modet The inits must be sodd through regular channed at reduced. pricos. The company does not expect the seling of these infenor units to have any effect on the sales of is current medel. What unit cost is relivant for nubablithing a mirimum seling price for the inferior units? (found pour answar to 2 dedimal. places.)
