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Bluebird Mfg. has received a special one-time order for 14,000 bird feeders at $5 per unit. Bluebird currently produces and sells 85,000 units at $8.00
Bluebird Mfg. has received a special one-time order for 14,000 bird feeders at $5 per unit. Bluebird currently produces and sells 85,000 units at $8.00 each. This level represents 85% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $4.00 per unit, which includes $2.00 variable cost and $2.00 fixed cost. If Bluebird accepts this additional business, the incremental revenue will be: Multiple Choice $42,000 $28,000. O 0 $32,000 $70,000 O $7,000
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