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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 105,600 units per yearis: The normal selling price is $21.00 per unit. The company's capacity is 133.200 units per yeat. An order has been received from a malorder house for 2.300 units at a special pice of $18.00 per unit. This order would not affect regular sales or the companys total fued 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 modet. The units must be sold through regular channets at reduced pices. The compary does not expect the seling 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
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