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MC Qu. 61 Bluebird Mfg. has received a special... Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.20 per unit.
MC Qu. 61 Bluebird Mfg. has received a special... Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.20 per unit. Bluebird currently produces and sells 75,000 units at $720 each. This level represents 80% 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 $3.80 per unit, which includes $2.35 variable cost and $1.45 fixed cost. If Bluebird accepts this additional business, the effect on net income will be Multiple Choice $48,000 increase. $12,750 increase S35.250 increase Prev 47 of 50 Next >
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