Question
Bluebad Manufacturing has received a special one-time order for 15,200 bied feeders at $3.20 per unit. Bluebed currently produces and sells 75,000 units at
Bluebad Manufacturing has received a special one-time order for 15,200 bied feeders at $3.20 per unit. Bluebed currently produces and sells 75,000 units at $720 each. This level represents 80% of its capacity Production costs for these units are $3.70 per unit, which includes $2.45 of variable costs and $1.45 of fixed costs. If the special offer is accepted, there will be no acremental fixed cost if Bluebird accepts this additional business, the effect on income will be O O $400 $37240
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