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Bluebird Manufacturing has received a special one-time order for 16,700 bird feeders at $4.70 per unit. Bluebird currently produces and sells 75,000 units at $8.70
Bluebird Manufacturing has received a special one-time order for 16,700 bird feeders at $4.70 per unit. Bluebird currently produces and sells 75,000 units at $8.70 each. This level represents 80% of its capacity. Production costs for these units are $5.20 per unit, which includes $3.95 of variable costs and $2.95 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be
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