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

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Accounting

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134 points 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 108,800 units per year is: 1.80 S 3.00 S 60 $ 4.45 s 1.80 s 2.00 Direct materials Direct labor Fixed manufacturing overhead Variable selling and administrative expense Fixed soling and administrative expense The normal selling price is $22 per unit. The company's capacity is 132,000 units per year An order has been received from a mail-order house for 2,100 units at a special price of $19.00 per unit. This order would not affect regular sales. Required: 1. 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.) Assume the company has 500 units of this seoduct left over from last year hat are inferior to the curent model The units must bo sold throush regular channols at reduced enices What del 2 3 4

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