Delfa company produces a single product and has a normal production capacity of 122,400 units per year. They received a special order for 2,700 units at $2,000 per unit, compared to their normal selling price of $2,300 per unit. Accepting this order would provide a financial advantage through increased revenue from the lower per unit price, but would not affect regular sales volumes or total fixed costs. As a separate matter, the company has 1,000 inferior units from last year that must be sold at a reduced price through regular channels, and the relevant cost for setting a minimum price is the normal unit cost of production and sale.

1. Delfa company produces a single product the cost of producing and selling a single unit of this
product at the comparyys normal. activity leve of 90.000 units per year is: The normal seling
price is $2300 per unit. The company's capacity is 122.400 units per yeat An order has been
received from a ma:order house for 2700 units at a special price of $20,00 per unt. This order
would not atfect regular sales or the company's total fixed costs. Required: 1. What is the
financial advantage (disadvantage) of accepting the speciat order? 2. As a separate matter from
the speclal order, assume the company's inventory inciudes 1.000 inits of this product that were
produced last year and that are infernor to the current model. The units must be sold through
regular channels at reduced prices the company does not expect the seling of these infenor units
to have any effect on the sates of its current model, What unit cost is relevant for estabushing a
minimum seling paice for the inferiot units? Complete this question by entering your answers in
the tabs below. What is the financial advantage (disadvantage) of accepting the special order?