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

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Delta Company Produces A Single Product The Cost Of Producing And Selling A Single Unit Of This Product Is The Company 1 (26.63 KiB) Viewed 51 times

Delta Company Produces A Single Product The Cost Of Producing And Selling A Single Unit Of This Product Is The Company 2 (39.62 KiB) Viewed 51 times

Delta Company produces a single product. The cost of producing and selling a single unit of this product is the company's normal activity level of 92 400 units per year ise Direct materiale $ 2.00 Direct labor Valable manufacturing overhead $. Tacturing what 1.35 Variable salline distrative expense 31.10 et selline and distratives The normal selling price is $18.00 per unit. The company's capacity is 122.400 units per yeat. An order has been received from a mall order house for 2.500 units at a special price of $15.00 pet unit. This order would not affect regular sales or the company's total fixed costs Required: 1. What is the financial advantage disadvantages of accepting the special order? 2. As a separate matter from the special ordet assume the company's inventory includes 1000 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 costs relevant for establishing a minimum selling price for the interior units! Inces Complete this question by entering your answers in the tabs below. Required ered 2 What is the financial advantage (disadvantage of accepting the special order? Required 2 >
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 92.400 units per year is Direct materials Direct labor $ 3. Variable manufacturing overhead $ 0.0 Fixed manufacturing overhead $ 3.55 Variable selling and administrative expense $ 1.50 Fixed velling and dinistrative expense 3.00 The normal selling price is $18.00 per unit. The company's capacity is 122.400 units per year. An order has been received from a mail: order house for 2.500 units at a special price of $15.00 per unit. This order would not affect regular sales or the company's total fixed costs Required: 1. What is the financial advantage (disadvantages of accepting the special order? 2. 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 interior units? Complete this question by entering your answers in the tabs below. Required Required 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) Show less Relevant cost per unit