At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player at full capacity that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 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. Reject Order Accept Net Income Increase Order (Decrease) Revenues Costs- Manufacturing Shipping Net income

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10MC
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At Bargain Electronics, it costs $33 per unit ($18 variable and $15
fixed) to make an MP3 player at full capacity that normally sells
for $42. A foreign wholesaler offers to buy 4,260 units at $29 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.
Reject
Order
Accept
Net Income Increase
Order
(Decrease)
Revenues
Costs-
Manufacturing
Shipping
Net income
Transcribed Image Text:At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player at full capacity that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 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. Reject Order Accept Net Income Increase Order (Decrease) Revenues Costs- Manufacturing Shipping Net income
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