Question: At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. A foreign

 At Bargain Electronics, it costs $30 per unit ($16 variable and
$14 fixed) to make an MP3 player that normally sells for $51.

At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. A foreign wholesaler offers to buy 3,580 units at $28 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es (451) Reject Accept Net Income Order Order Increase (Decrease) $ Revenues Costs-Variable manufacturing Shipping Net Income The special order should be Pine Street Inc, makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses es (451 Sell Process Further Net Income Increase (Decrease) $ Sales price per unit Cost per unit Variable Fixed Total Net income per unit $ $ The bookcases

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