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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 96,000 units per year is: The normal selling price is $21.00 per unit. The company's capacity is 128,400 units per year. An order has been recelved from a mailorder house for 2,700 units at a special price of $18.00 per unit. This order would not affect regular sales or the company's 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 of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. 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. What is the fnancial advantage (disadvantage) of accepting the special order? The normal selling price is $21.00 per unit. The company's capacity is 128,400 units per year. An order has been received from a mailorder house for 2,700 units at a special price of $18.00 per unit. This order would not affect regular sales or the company's 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 of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. 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 of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is reievant for establishing a minimum selling price for the inferior units? (Round your answer to 2 decimal places.) ercise 1310 (Algo) Make or Buy Decision [LO13-3] tura Company purchases the 70,000 starters that it installs in its standard line of farm tractors from a suppller for the price of $11.60 er unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than uying them from an outside suppller. However, the company's chief engineer is opposed to making the starters because the roduction cost per unit is $13.00 as shown below: If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $140,000 ) to oversee production. However. the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $83,000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 70,000 starters instead of buying th him from an outside supplier? Exercise 13-13 (Algo) Sell or Process Further Decision [LO13-7] Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $66,000 per ton, one-fourth of which is allocated to product X15. Seven thousand four hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $18 each, or processed further at a total cost of $9,500 and then sold for $23 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15 ? 2. Should product 15 be processed further or sold at the split-off point