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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.50 per unit. Bluebird currently produces and sells 75,000 units at $6.50

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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.50 per unit. Bluebird currently produces and sells 75,000 units at $6.50 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through normal channels. Production costs for these units are $3.65 er unit, which includes $2.00 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be: Multiple Choice $30,000 decrease. $37,500 increase. $17,250 decrease $7.500 increase / Prev 36 of 72 Next >

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