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At Bargain Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player at full capacity that normally sells for
At Bargain Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 4,000 units at $30 each. Bargain Electronics will incur special shipping costs of $2 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).) Brief Exercise 21-3 At Bargain Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 4,000 units at $30 each. Bargain Electronics will incur special shipping costs of $2 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 eg. 45 or parentheses e.g. (45).)
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