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Question Completion Status: O Project because it has a lower initial investment. QUESTION 12 Bluebird Mill has received a special one-time order for 15,000 bird
Question Completion Status: O Project because it has a lower initial investment. QUESTION 12 Bluebird Mill has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 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 $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the incremental revenue will be: $45,000. $11,250. $33,750. $7,500 $52,500 QUESTION 13 Holder Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as shown below. Holder Manufacturing the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0 2 years, 0.7561; 3 years, 0.6575. Which machine should Holder purchase? sk Save and Submit to save and submit. Click Save All Answers to save all answers
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