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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.30 per unit. Bluebird currently produces and sells 75,000 units at $6.30
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.30 per unit. Bluebird currently produces and sells 75,000 units at $6.30 each. This level represents 80% of its capacity. Production costs for these units are $3.55 per unit, which includes $1.90 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be: $6,000 increase. $28,500 increase. $34,500 increase. $18,750 decrease. $28,500 decrease.
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