Question: At Bargain Electronics, it costs $33 per unit ($19 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for
At Bargain Electronics, it costs $33 per unit ($19 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for $55. A foreign wholesaler offers to buy 3,750 units at $28 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 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
| Costs-Manufacturing | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
| Shipping | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
| Net income | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
| The special order should be select an option rejectedaccepted. |
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