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Bluebird Mig. has received a special one-time order for 15,000 bird feeders at $2.80 per unit. currently produces and sells 75,000 units at $6.80 each.
Bluebird Mig. has received a special one-time order for 15,000 bird feeders at $2.80 per unit. currently produces and sells 75,000 units at $6.80 each. This level represents 80% of its capacity. Production costs for these units are $3.60 per unit, which includes $2.15 varlable cost and $1.45 fixed cost. If Blueblrd accepts this additional business, the effect on net income will be: O $42,000 increase. O $9,750 increase. O $32.250 increase. $12,000 decrease. O $32.250 decrease
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