Question
At Bargain Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player at full capacity that normally sells for
At Bargain Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player at full capacity that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 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 rejected or accepted . |
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