Question
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
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 4,170 units at $25 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 $ $ $ Costs-Manufacturing Shipping Net income $ $ $ The special order should be .
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