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At Ivanhoe Electronics, it costs $34 per unit ($19 variable and $15 fixed) to make an MP3 player that normally sells for $53. A foreign
At Ivanhoe Electronics, it costs $34 per unit ($19 variable and $15 fixed) to make an MP3 player that normally sells for $53. A foreign wholesaler offers to buy 4,380 units at $27 each. Ivanhoe Electronics will incur special shipping costs of $2 per unit. Assuming that Ivanhoe Electronics has excess operating capacity, indicate the net income (loss) Ivanhoe 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).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be $ $ Reject Order $ $ Accept Order $ $ Net Income Increase (Decrease)
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