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Bluebird Mfg. has received a special one-time order for 6,000 bird feeders at $7 per unit. Bluebird currently produces and sells 85,000 units at $9.00
Bluebird Mfg. has received a special one-time order for 6,000 bird feeders at $7 per unit. Bluebird currently produces and sells 85,000 units at $9.00 each. This level represents 85% 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 $5.50 per unit, which includes $4.00 variable cost and $1.50 fixed cost. If Bluebird accepts this additional business, the incremental revenue will be
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