Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Bluebird Manufacturing has recelved a special one-time order for 15,900 bird feeders at $3.90 per unit. Bluebird currently produces and sells 75.000 units

image text in transcribed
please help image text in transcribed
Bluebird Manufacturing has recelved a special one-time order for 15,900 bird feeders at $3.90 per unit. Bluebird currently produces and sells 75.000 units at $7.90 each. This level represents 80% of its capacity. Production costs for these units are $4.40 per unit, which includes $3.15 of variable costs and $2.15 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be: Multuple Choice $50,095 decrease: $50.085 incredse 5t1,92.5 increase. 57.950 decrease 562.010 increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins

7th edition

77733770, 978-0077733773

More Books

Students also viewed these Accounting questions

Question

What is the principle of caveat empto(! What is merchantability?

Answered: 1 week ago