The normal selling price is $18.00 per unit. The company’s capacity is 120,000 units per year. An order has been received from a mail-order house for 2,900 units at a special price of $15.00 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 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 effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?

1)Information is missing, so I tried to fill it out with the following:

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 100,800 units per year is:

At the current output level, average total costs are $16.15 per unit, and the company is earning  $1.85 per unit sold, total profits $186,480 (= $1.85 per unit x 100,800 units).

If the company accepts the special order, the cost of producing and selling each unit will be lower:

Average total costs for the special order should be $8.40 per unit, at a $15 per unit price, the company's income would increase by $19,140 [= ($15 - $8.40) x 2,900 units].

2) If the company wants to sell its remaining inventory from last year, it should only consider variable costs of production, similarly to the special order, since fixed costs were already absorbed by the units sold last year. There COGS should also be $8.40 per unit.

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !