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  3. delta company produces a single product. the cost

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 87,600 units per year is: 2.10 Direct materials 2.00 Direct labor .60 Variable manufacturing overhead 4.95 Fixed manufacturing overhead Variable selling and administrative expenses 1.30 Fixed selling and administrative expenses 1.00 The normal selling price is $20 per unit. The company's capacity is 108,000 units per year. An order has been received from a mail-order house for 1,700 units at a special price of $17.00 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.) by nnual profits would

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