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 96,000 units per year is: Direct materials Direct labor $ 1.50 $ 4.00 $ 0.70 Variable manufacturing overhead Fixed manufacturing overhead $ 4.65 Variable selling and administrative expense Fixed selling and administrative expense $ 2.00 $ 3.00 The normal selling price is $19.00 per unit. The company's capacity is 115,200 units per year. An order has been received from a mail-order house for 1,600 units at a special price of $16.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1.What would be the total financial impact of accepting the special order? (Indicate negative cash flows with a negative sign.) 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 inferior units? (In other words, what is the least they can charge for these units and not lose money?) Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? < Required 1 Required 2 > Required 1 Required 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 inferior units? (Round your answer to 2 decimal places.) Show less Relevant cost per unit

Psaki Inc. manufactures and sells a single product called a Shiner. Operating at capacity, the company can produce and sell 22,000 Shiners per year. Costs associated with this level of production and sales are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit Total $16.00 $ 352,000 9.00 198,000 4.00 88,000 10.00 220,000 4.00 88,000 132,000 6.00 $49.00 $1,078,000 The Shiners normally sell for $54 each. Fixed manufacturing overhead is constant at $220,000 per year within the range of 15,000 through 22,000 Shiners per year. Required: 1. Assume that, due to a recession, Psaki Company expects to sell only 15,000 Shiners through regular channels next year. A large retail chain has offered to purchase 7,000 Shiners if Psaki is willing to accept a price lower than the regular $54. There would be no sales commissions on this order; thus, variable selling expenses would be slashed…

The following information relates to the unit product cost for a product manufactured by Nelson Industrial Company:Direct materials: $24 Direct Labor: 15 Variable overhead: 30 Fixed overhead: 18 Unit cost: 87 Line Item Description Cost Direct materials $24 Direct labor 15 Variable overhead 30 Fixed overhead                       18 Unit cost $87 In addition, fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 100,000 units for $90 each.If the firm produces the special order, the effect on income would be a(n): a. increase of $1.050,000. b. decrease of $900,000. c. decrease of $1,0500,000. d. increase of $900,000.

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 105,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The normal selling price is $19.00 per unit. The company's capacity is 123,600 units per year. An order has been received from a mail- order house for 1,500 units at a special price of $16.00 per unit. This order would not affect regular sales or the company's total fixed costs. $ 1.80 $3.00 $ 0.60 $4.25 $ 1.80 $2.00 Required: 1. What is the financial advantage (disadvantage) 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…