Question: 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

Delta Company produces a Single product. The COSt Of producing and selling

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 86.400 units year is: The Selling price iS per unit. The Capacity iS 114@0 units per year An Older has been received from a mail. Order house fat 2,300 units at a Special Of S19.OO 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 natter from the Order. assume the company'S inventory includes 1000 units Of this product that Were last year and that are inferior to the Current model The units must be Sald through regular channels at reduced The company does not the Selling Of these inferior units to have any effect on the Sales Of Current What unit Cast iS relevant fat establishing a minimum Selling price for these ulits? Requirement 1: What is the financial advantage (disadvantage) of the special order? Requirement 2: As a separate matter from the special order, assume the companyg 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 these units? (Round your answer to 2 decimal places.) Show less

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