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The normal selling price is $18.00 per unit. The company's capacity is 116,400 units per year. An order has been recelved from a mailorder house
The normal selling price is $18.00 per unit. The company's capacity is 116,400 units per year. An order has been recelved from a mailorder house for 2,600 units at a special price of $15.00 per unit. This order would not affect regular sales or 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 that are inferior quality. The units must be sold through regular channels at a reduced price. The company does not expect the selling of these inferior units to affect regular sales. 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. As a separate matter from the special order, assume the company's inventory includes 1,000 units that are inferior quality. The units must be sold through regular channels at a reduced price. The company does not expect the selling of these inferior units to affect regular sales. What unit cost is relevant for establishing a minimum selling price for the inferior units? Note: Round your answer to 2 decimal places
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