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Your answer is partially correct. At Bargain Electronics, it costs $32 per unit ($20 variable and $12 fixed) to make an MP3 player that normally
Your answer is partially correct. At Bargain Electronics, it costs $32 per unit ($20 variable and $12 fixed) to make an MP3 player that normally sells for $43. A foreign wholesaler offers to buy 4,850 units at $26 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) $ $ $ $ 130950 $ 130950 Revenues Costs-Variable manufacturing 97,000 i 97,000 4850 i 4850 Shipping $ $ 29,100 $ 29,100 Net income The special order should be accepted
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