Please help with 1 & 2 thank you !! Exercise 13-9 (Static) Special Order Decision [LO13-4]Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normalactivity level of 60,000 units per year is:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expenseFixed selling and administrative expense$ 5.10$ 3.80$ 1.004.20$ 1.50$ 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-orderhouse 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: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 wereproduced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. Thecompany does not expect the selling of these inferior units to have any affect on the sales of its current model. What unit cost isrelevant for establishing a minimum selling price for the inferior units?Required 1 Required 2Complete this question by entering your answers in the tabs below.

In case of special order, the special order should be accepted only when there is net benefit from…

Requir 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 at reduced prices. The telling of these inferior units to have any affect on the sales of its current model. What unit cost is

Requir 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 at reduced prices. The telling of these inferior units to have any affect on the sales of its current model. What unit cost is

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Process Cost Systems

Section: Chapter Questions

Problem 17.3TIF

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1. Calea Corp. has received a request for a special order of 6,000 units of product Y69 for P13.70 each. Y69’s unit product cost is P11.50, determined as follows: Direct materials, P2.50; Direct labor, P1.90; Variable manufacturing overhead, P2.30; fixed manufacturing overhead, P4.80. Direct labor is a variable cost. The special order would have no effect on the company’s total fixed manufacturing costs. The customer would like modifications made to product Y69 that would increase variable cost by P8.10 per unit and that would require an investment of P20,000 in special molds that would have no salvage value. This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, what would be the company’s increase or (decrease) in overall net operating income? 2. Selected information from the accounting records of Vigor Co. is as follows: Net accounts receivable at Dec. 31, 2018,…
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