Accounting question At Bargain Electronics, it costs $33 per unit ($18 variable and $15fixed) to make an MP3 player at full capacity that normally sellsfor $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 byaccepting the special order.RejectOrderAcceptNet Income IncreaseOrder(Decrease)RevenuesCosts-ManufacturingShippingNet income

Step 1: Define Cost-Volume-ProfitIn negotiating special orders, it is helpful to be able to use the…

Answered: At Bargain Electronics, it costs $33…

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 Crane Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player that normally sells for $46. A foreign wholesaler offers to buy 3,180 units at $26 each. Crane Electronics will incur special shipping costs of $4 per unit. Assuming that Crane Electronics has excess operating capacity, indicate the net income (loss) Crane 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 LA Net income $ LA The special order should be Reject Order +A Accept Order +A $ $ +A Net Income Increase (Decrease)
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At Sandhill Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 3,720 units at $28 each. Sandhill Electronics will incur special shipping costs of $3 per unit. Assuming that Sandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill 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 i i $ $ Accept Order 104,160 (74,400) i (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040
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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.

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