Business, 30.10.2019 02:31 jay1041

Delta company produces a single product. the cost of producing and selling a single unit of the product at the company’snormal activity level of 60,000 units per year is: $5. $3.80variable manufacturing overhead . . . . . . . .. $1.00fixed $4.20variable selling and administrative expense . . . . . . $1.50fixed selling and administrative expense. . . . . . . $2.40the normal selling price is 821 per unit the company’s capacity is 75,000 units per year. an order has been received froma mail-order house for 15,000 units at a special price of $14.00 per unit. this order would not affect regular sales or thecompany’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 thatwere produced last year and that are inferior to the current model. the units must be sold through regular channels atreduced prices. what unit cost is relevant for establishing a minimum selling price for these units? explain.

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