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Your answer is partially correct. At Oriole Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally
Your answer is partially correct. At Oriole Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $55. A foreign wholesaler offers to buy 4,960 units at $24 each. Oriole Electronics will incur special shipping costs of $3 per unit. Assuming that Oriole Electronics has excess operating capacity, indicate the net income (loss) Oriole 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).) Revenues Costs-Variable manufacturing Shipping Net income $ The special order should be accepted Reject Order 0 $ 0 0 0 $ Accept Order 119,040 $ -99,200 i -19,840 0 $ Net Income Increase (Decrease) 119,040 99,200 19,840 0
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