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At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign
At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 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 | $enter revenues in dollars | $enter revenues in dollars | $enter revenues in dollars | ||||
CostsVariable manufacturing | enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | ||||
Shipping | enter shipping costs in dollars | enter shipping costs in dollars | enter shipping costs in dollars | ||||
Net income | $enter net income in dollars | $enter net income in dollars | $enter net income in dollars |
The special order should be select an option rejectedaccepted. |
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