Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.10 per unit. Bluebird currently produces and sells 75,000 units at $6.10 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $3.45 per unit, which includes $1.80 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:

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A B C D E F G H 2 3 Companys normal production 75000 4 Capacity 93750 D380 5 Units manufacturing Cos... View the full answer