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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