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  3. 5.60 points delta company produces a single produc

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

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Accounting

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5.60 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 90,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $ 1.20 $2.20 $ 4.00 $ .60 $4.85 Fixed selling and adiministrative expenses 5 3,00 The normal selling price is $23 per unit. The company's capacity is 126,000 units per year. An order has been received from a mail-order house for 3,000 units at a special price of $20.00 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.) Annual profits would

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