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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit Bluebird currently produces and sells 75,000 units at $8.00
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit Bluebird currently produces and sells 75,000 units at $8.00 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 $5.00 per unit, which includes $2.75 variable cost and $2.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be Multiple Choice $60,000 increase. $18,750 increase $41,250 increase $15,000 decrease $41,250 decrease
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