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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 60,000 units per year is: The normal selling price is $21 per unit. The company's capacity is 75,000 units per year. An order has been received from a mail-orde house for 15,000 units at a special price of $14.00 per unit. This order would not affect regular sales or the company's total fixed costs As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any affect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units? (Round your answer to 2 decimal places.)

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