Question: At Bargain Electronics, it costs $10 per unit ($4 variable and $6 fixed) to make a portable phone charger that normally sells for $20. A

At Bargain Electronics, it costs $10 per unit ($4 variable and $6 fixed) to make a portable phone charger that normally sells for $20. A foreign wholesaler offers to buy 4,000 units at $17 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.

Reject or Accept
Reject Order Accept Order Net Income Increase (Decrease
Revenues $ $ $
Variable Manufacturing Costs $ $ $
Shipping Cost $ $ $
Net Income / (Loss) $ $ $

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