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At Bargain Electronics, it costs $10 per unit ($4 variable and $6 fixed) to make a portable phone charger that normally sells for $20.
At Bargain Electronics, it costs $10 per unit ($4 variable and $6 fixed) to make a portable phone charger that normally sells for $20. A foreign wholesaler offers to buy 4,000 units at $17 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. Hint: Fixed costs are not avoidable whether the special order is accepted or rejected. Therefore, they will not affect the company's net income. . . . Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). If the amount is zero, enter 0. Revenues Variable Manufacturing Costs Shinning ce Reject or Accept Reject Order Accept Order $ Net Income Increase (Decrease) EA
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