Bluebird Mtg received a special onetime order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75'000 units at $7.00 each. The level represents 80% of its capacity. Production cost for these units are $3.50 per unit, which includes $2.25 variable cost and $125 fixed cost. If bluebird accepts the additional business, the effect on net income will be: $ 11,250 increase 4. Fredrick Co. is thinking about having one of its products manufactured by a subcontractor. If Fredrick can buy 5,000 units from a subcontractor for $130,000 it should: Buy the product because the total incremental cost of manufacturing are greater than $130,000 5. Chang industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $5 each. Chang's Deduction manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The incremental income or loss on reworking the units is: $20,000 income