Question: At Bargain Electronics, it costs $ 30 per unit ($ 20 variable and $ 10 fixed) to make an MP3 player that normally sells for
At Bargain Electronics, it costs $30 per unit ($20variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. BargainElectronics will incur special shipping costs of $3per 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 e.g. -45 or parentheses e.g. (45).)
| Reject Order | Accept Order | Net Income Increase (Decrease) | |||||
|---|---|---|---|---|---|---|---|
Revenues | $enter a dollar amount | $enter a dollar amount | $enter the difference between the two previous amounts in the row | ||||
CostsVariable manufacturing | enter a dollar amount | enter a dollar amount | enter the difference between the two previous amounts in the row | ||||
Shipping | enter a dollar amount | enter a dollar amount | enter the difference between the two previous amounts in the row | ||||
Net income | $enter a total amount | $enter a total amount | $enter a total amount |
| The special order should be select between accepted and rejected |
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