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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 86,400 units per year is: The normal selling price is $24 per unit. The company's capacity is 117,600 units per year. An order has been received from a mail-order house for 2,600 units at a special price of $21.00 per unit. This order would not affect regular sales. Required: 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.)
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