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 102,000 units per year is: Direct materials $ 2.20 Direct labor $ 3.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 3.35 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 2.00 The normal selling price is $23.00 per unit. The companys capacity is 134,400 units per year. An order has been rece