Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’

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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:
Direct materials
$
5.10
Direct labor
$
3.80
Variable manufacturing overhead
$
1.00
Fixed manufacturing overhead
$
4.20
Variable selling and administrative expense
$
1.50
Fixed selling and administrative expense
$
2.40
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-order 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.
Required:
What is the financial
advantage (disadvantage) of accepting the special
order?