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The normal selling price is $ 2 2 . 0 0 per unit. The company's capacity is 1 2 0 , 0 0 0 units

The normal selling price is $22.00 per unit. The company's capacity is 120,000 units per year. An order has been received from a mail-
order house for 1,800 units at a special price of $19.00 per unit. This order would not affect regular sales or total fixed costs.
Required:
What is the financial advantage (disadvantage) of accepting the special order?
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?
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