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Delta Company produces a single product. The cost of producing and selling a single unit...

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Accounting

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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 93,600 units per year is: The normal selling price is $19.00 per unit. The company's capacity is 121,200 units per yeac. An order has been received from a mailorder house for 2,300 units at a special price of $16.00 per unit. This order would not affect regular sales or total fixed costs. Required: 1. What is the financlal 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 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

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