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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.00 per unit. Bluebird currently produces and sells 75,000 units at $6.00
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.00 per unit. Bluebird currently produces and sells 75,000 units at $6.00 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 $3.40 per unit, which includes $1.75 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be: Multiple Choice O $21,000 decrease. O $26,250 decrease. O $26,250 increase. O $30,000 increase. O $3,750 increase
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