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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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Question

Accounting

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 86,400 units per year is:
The normal selling price is $19.00 per unit. The company's capacity is 99,600 units per year. An order has been received from a mail-order house for 1,100 units at a special price of $16.00 per unit. This order would not affect regular sales or total fixed costs.
Required 1:
1.What is the financial advantage (disadvantage) of accepting the special order?
Financial advantage/Financial disadvantage: ________.
Required 2:
2.As a separate matter from the special order, assume the company's inventory includes 1,000 units that are inferior quality. The units must be sold through regular channels at a reduced price. The company does not expect the selling of these inferior units to affect regular sales. What unit cost is relevant for establishing a minimum selling price for the inferior units?
Note: Round your answer to 2 decimal places.
Relevant cost per unit: ________.
Thank you so much! If correct, I will 100 percent give a thumbs up! :)
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