$13-9$ Exercise $13-9($Algo$)$ Special Order Decision $[$L$013-4]$

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 $100,800$ units per year is:

The normal selling price is $$21\mathrm{.}00$ per unit. The company's capacity is $123,600$ units per year.

An order has been received from a mail$-$order house for $1,900$ units at a special price of

$$18\mathrm{.}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?

Complete this question by entering your answers in the tabs below.

What is the financial advantage $($disadvantage$)$ of accepting the special order?

Required $2.$

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?

Note: Round your answer to $2$ decimal places.

Relevant cost per unit$\_\_\_\_\_?$