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Bluebird Manufacturing has received a special one-time order for 15,000 bird feeders at $3.00 per unit. Bluebird currently produces and sells 75,000 units at $7.00
Bluebird Manufacturing has received a special one-time order for 15,000 bird feeders at $3.00 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $2.25 of variable costs and $1.25 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the incremental cost will be: Multiple Choice $33,750. $7,500. O $11,250. O $38,750. O $45,000
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