Question: At Bargain Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player at full capacity that normally sells for

At Bargain Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player at full capacity that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 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. (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 $

At Bargain Electronics, it costs $33 per unit ($15 variable and $18

$

fixed) to make an MP3 player at full capacity that normally sells

$

for $54. A foreign wholesaler offers to buy 4,520 units at $26

Costs-Manufacturing

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. (Enter negative

Shipping

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

$ $ $ Costs-Manufacturing Shipping Net income $ $ $ The special

Net income $

order should be rejected or accepted .

$

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$

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The special order should be

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.

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