Question: need help with question 10 and a check on question 9. 9. 10. Delta Company produces a single product. The cost of producing and selling

need help with question 10 and a check on question 9.

9. 10. Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's current demand level of 15,000 units per year is: Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expense Fixed selling and administrative expense $1.30 2.10 .40 .25 c. $5.25 d. none of the costs are relevant. .50 .70 The normal selling price is $12 per unit. The company's capacity is 20,000 units per year. An order has been received from a mail-order house for 5,000 units at a special price of $6 per unit. This order would not disturb regular sales. If the order is accepted, by how much will annual profits be increased or decreased? (The order will not change the company's total fixed costs.) a. $8,500 increase b. $8,500 decrease c. $3,750 increase d. $3,750 decrease Refer to the data in #9. Assume the company has 1,500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost figure is relevant for establishing a minimum selling price for these units? a. $4.30 b. $.50 I

9. Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's current demand level of 15,000 units per year is: The normal selling price is S12 per unit. The company's capacity is 20,000 units per year. An order has been recelved from a mill-order house for 5,000 units at a special price of $6 per unit. This order would not disturb reguler sales. If the order is acoeptod, by how much will amnual profits be inereased or decreased? (The order will not chnnge the company's total fixed costs.) a. $8,500 increase b. $8,500 docrease c. $3,750 increase 10. Refer to the dats in 19 . Assume the company has 1,500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost figure is relevant for establishing a minimum selling price for these units? a. $4.30 b. 5.50 c. 55.25 d. none of the costs are relevant

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