Question: At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $55. A foreign
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $55. A foreign wholesaler offers to buy 4,960 units at $24 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 eg. (45).) Reject Accept Net Income Order Order Increase (Decrease) 119,040 Revenues Costs-Variable 199,200) manufacturing o $ 119,040 $ 0 i 99200 0 14880 i 14880 Shipping 0 $ 34720 $ 233120 Net income The special order should be V accepted
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