Brief Exercise 7-3 At Bargain Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46.

A foreign wholesaler offers to buy 3,180 units at $26 each.

Bargain Electronics will incur special shipping costs of $4 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)

Reject Order Accept Order Net income (Increase/Decrease)

Revenues $ $ $

Costs-Manufacturing

Shipping

Net income $ $ $

The special order should be .