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Bluebird Mfg.has received a special one-time order for 15,000 bird feeders at $2.20 per unit. Bluebird currently produces and sells 75,000 units at $6.20 each.
Bluebird Mfg.has received a special one-time order for 15,000 bird feeders at $2.20 per unit. Bluebird currently produces and sells 75,000 units at $6.20 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $1.85 variable cost and $1.65 fixed cost If Bluebird accepts this additional business, the effect on net income will be: $33,000 increase. O $5,250 increase. $27,750 decrease. $19,500 decrease. $27,750 increase
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