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) (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040
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) (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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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