At Oriole Electronics, it costs $32 per unit ($15 variable and $17 fixed) to make an MP3 player that normally sells for $50. A foreign wholesaler offers to buy 4,400 units at $24 each. Oriole Electronics will incur special shipping costs of $2 per unit. Assuming that Oriole Electronics has excess operating capacity, indicate the net income (loss) Oriole 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		$		$		$
CostsVariable manufacturing
Shipping
Net income

Coronado Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 16,800 of the assembly part at $5 per unit. If the offer is accepted, Coronado will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Coronado will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Make		Buy		Net Income Increase (Decrease)
Variable manufacturing costs		$		$		$
Fixed manufacturing costs
Purchase price
Total annual cost

Bramble Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $37 variable and $10 fixed. Because it has unused capacity, Bramble Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Bramble Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Sell		Process Further		Net Income Increase (Decrease)
Sales price per unit		$		$		$
Cost per unit
Variable
Fixed
Total
Net income per unit		$

Sheridan, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,900 from sales $200,000, variable costs $175,000, and fixed costs $30,900. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Continue		Eliminate		Net Income Increase (Decrease)
Sales		$		$		$
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)