Question: At Bargain Electronics, it costs $33per unit ($15variable and $18fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to

At Bargain Electronics, it costs $33per unit ($15variable and $18fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to buy4,520units at $26each. Bargain Electronics will incur special shipping costs of $1per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.

Reject Order Accept Order Net Income (decrease)

Revenue 0 110,500 110,500

Cost-var.manufacturing 0 63, 750 -63750

Shipping 0 4,250 -4250

Net Income 0 42,500 42,500

I should accept the order.

I'm working in this problem, when I submited all the amounts are wrong (they are in reed) in the Accept Order and Net Income (decrease), can you tell me why?

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