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Business, 16.12.2019 19:31 hannamcbrayer1

Delta company produces a single product. the cost of producing and selling a single unit of this product at the company'snormal activity level of 60,000 units per year is: direct materials $5.10direct labor $3.80ariable manufacturing overhead $1.00fixed manufacturing overheadariable selling and administrative expense $1.50fixed selling and administrative expense 5240the normal selling price is $21 per unit, the company’s capacity is 75,000 units per year. an order has been received froma mail-order house for 15,000 units at a special price of 514.00 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 orderwill not change thecompany’s total fixed costs.)1 assume the company has 1,000 units of this product left over from last yearthat are inferior to the current model. theunits must be sold through regular channels at reduced prices. what unit cost is relevant for establishing a minimumselling price for these units? explain.

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