full question 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 1,000units 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 expectthe selling of these inferior units to have any affect on the sales of its current model. What unitcost is relevant for establishing a minimum selling price for the inferior units? Explain. 1. Calculate the contribution margin per pound of the constraining resource for each product.2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximumcontribution margin the company can earn when using the 6,000 pounds of raw material on hand?Assuming that Barlow's estimated customer demand is 500 units per product line, what is themaximum contribution margin the company can earn when using the 6,000 pounds of rawmaterial on hand?3.4. A foreign supplier could furnish Barlow with additional stocks of the raw material at asubstantial premium over the usual price. Assuming Barlow's estimated customer demandis 500 units per product line and that the company has used its 6,000 pounds of raw materialin an optimal fashion, what is the highest price Barlow Company should be willing to pay foran additional pound of materials? Explain.EXERCISE 13- Special Order Decision LO13-4Delta Company produces a single product. The cost of producing and selling a single unit of thisproduct at the company's normal activity level of 60,000 units per year is:Direct materialsDirect labor..Variable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expenseFixed selling and administrative expense$5.10$3.80$1.00$4.20$1.50$2.40The normal selling price is $21 per unit. The company's capacity is 75,000 units per year. An orderhas been received from a mail-order house 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.

Name: full question Required:1. What is the financial advantage (disadvantag
Uploaded: 2024-03-20T06:32:49.000Z
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Description: full question 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 1,000units of this product that were produced last year an