ACC/561-At Bargain Electronics, it costs $31 per unit

by | Mar 18, 2020 | Uncategorized

  
At Bargain Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player at full capacity that normally sells for $49. A foreign wholesaler offers to buy 3,720 units at $28 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 e.g. -45 or parentheses e.g. (45).)

Reject
Order		 Accept
Order		 Net Income
Increase (Decrease)
Revenues $ $ $
Costs-Manufacturing
Shipping
Net income $ $ $

The special order should be

acceptedrejected
  

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