Answered step by step
Verified Expert Solution
Question
1 Approved Answer
bluebird mfg. has received a special one-time order for 8,000 birdfeeders at $6 per unit. Bluebird currently produces and sells 90,000 units at $9.00 each.
bluebird mfg. has received a special one-time order for 8,000 birdfeeders at $6 per unit. Bluebird currently produces and sells 90,000 units at $9.00 each. This level represents 90% 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 $4.00 per unit, which includes $3.00 variable cost and $1.00 fixed costs. If Bluebird accepts this additional business, the incremental revenue will be:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started