Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at

image text in transcribed

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 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 its normal channels. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the incremental cost will be: Multiple Choice $45,000. $11,250. $38,750. $7,500. $33,750.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting for Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

2nd edition

978-0077403485, 77403487, 73527130, 978-0073527130

More Books

Students also viewed these Accounting questions

Question

Where is the position?

Answered: 1 week ago

Question

Describe the strategy of a global macro fund.

Answered: 1 week ago

Question

Complete the following acid-base reactions: (a) HCCH + NaH

Answered: 1 week ago