Thes Cocmpany produces a single product. The cost of producing and setirng a single unit of thls product at the company's normal ictivity level of 60,000 unts per year is: The noithal seling price is 521 per unt. The company's capacity is 75,000 units per yeat An order has been recelved from at inail order house for 15,000 units at a spectal price of $1400 per unit. Thes order would not iffect regular sales or the comparys totai fired costs Required: 1 What is the financal advartage (disstwantoge) of accepting the special order? 2. As a separate matier lrom the special order, assume the companys inventory includes 1,000 units of this prodice that were. produced last year and that are inferior to the curtent model. The units must be sold through fegular channes at ireduced prices. Ihe compary does not expect the seling of these inferior units to have any affect on the sales of its current model What unit cost is relevant for essablinfing a minwurn seling pice for the inferior unes? Complete this question by entering your answers in the tabs below. Futura Company purchases the 40.000 starters that it installs in its. standard line of farm tractots from a supplier for the price of $8.40 per unit. Due to a reduction in output, the company now has idle capacify that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $9.20 as shown below If Futura decides to make the starters, a supervisor wouid have to be higed (at a salary or 560.000) to oversee production. Howevec, the company has suthicient idle toois and mach inery such that no new equipment would hove to be purchased. The rent charge above. is bosed on space utilied in the plant. The total rent on the plant is 580000 per period. Depreciation is due to obsolescence rather than wear and tear Required: What is the financial advantage (disatvantage) of making the 40000 starters instead of buyng them from an outside supplier? Thes Cocmpany produces a single product. The cost of producing and setirng a single unit of thls product at the company's normal ictivity level of 60,000 unts per year is: The noithal seling price is 521 per unt. The company's capacity is 75,000 units per yeat An order has been recelved from at inail order house for 15,000 units at a spectal price of $1400 per unit. Thes order would not iffect regular sales or the comparys totai fired costs Required: 1 What is the financal advartage (disstwantoge) of accepting the special order? 2. As a separate matier lrom the special order, assume the companys inventory includes 1,000 units of this prodice that were. produced last year and that are inferior to the curtent model. The units must be sold through fegular channes at ireduced prices. Ihe compary does not expect the seling of these inferior units to have any affect on the sales of its current model What unit cost is relevant for essablinfing a minwurn seling pice for the inferior unes? Complete this question by entering your answers in the tabs below. Futura Company purchases the 40.000 starters that it installs in its. standard line of farm tractots from a supplier for the price of $8.40 per unit. Due to a reduction in output, the company now has idle capacify that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $9.20 as shown below If Futura decides to make the starters, a supervisor wouid have to be higed (at a salary or 560.000) to oversee production. Howevec, the company has suthicient idle toois and mach inery such that no new equipment would hove to be purchased. The rent charge above. is bosed on space utilied in the plant. The total rent on the plant is 580000 per period. Depreciation is due to obsolescence rather than wear and tear Required: What is the financial advantage (disatvantage) of making the 40000 starters instead of buyng them from an outside supplier