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At Sandhill Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player that normally sells for $40. A foreign
At Sandhill Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player that normally sells for $40. A foreign wholesaler offers to buy 4,000 units at $30 each. Sandhill Electronics will incur special shipping costs of $2 per unit. Assuming that Sandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill 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 $ accepted Reject Order 0 -68000 0 44000 $ Accept Order 120000 8000 i 44000 Net Income Increase (Decrease) 120000 -8000
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