Exercise 10-9 Special Order [LO10-4] 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 108,000 units per year is: Direct materials $ 1.70 Direct labor $ 3.00 Variable manufacturing overhead $ .80 Fixed manufacturing overhead $ 4.85 Variable selling and administrative expenses $ 2.00 Fixed selling and administrative expenses $ 2.00 The normal selling price is $26 per unit. The companys capacity is 136,800 units per year. An order has been received from a mail-order house for 2,400 units at a special price of $23.00 per unit. This order would not affect regular sales. Required: 1. If the order is accepted, by how much will annual profits be increased or decreased? (The order will not change the companys total fixed costs.)