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Bluebird Manufacturing has received a special one-time order for 16,800 bird feeders at $4.80 per unit. Bluebird currently produces and sells 75,000 units at
Bluebird Manufacturing has received a special one-time order for 16,800 bird feeders at $4.80 per unit. Bluebird currently produces and sells 75,000 units at $8.80 each. This level represents 80% of its capacity. Production costs for these units are $5.30 per unit, which includes $4.05 of variable costs and $3.05 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 Multiple Choice $80,640 increase $12.600 increase O $68,040 increase. $8,400 decrease $68,040 decrease
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