At Sheridan Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan 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 123,540 76,680 i 4,260 42,600 $ $ Net Income Increase (Decrease) 123,540 76,680 4,260 42,600
At Sheridan Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan 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 123,540 76,680 i 4,260 42,600 $ $ Net Income Increase (Decrease) 123,540 76,680 4,260 42,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Current Attempt in Progress
-
Your answer is partially correct.
At Sheridan Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign
wholesaler offers to buy 4,260 units at $29 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that
Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan 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
123,540
76,680 i
4,260 i
42,600
$
Net Income
Increase (Decrease)
123,540
76,680
4,260
42,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b038a8b-53d9-4c60-ba0c-2200dc11f29a%2F347e0c9e-1461-421e-9067-40044f8c5673%2Fgkdsp8m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
-
Your answer is partially correct.
At Sheridan Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign
wholesaler offers to buy 4,260 units at $29 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that
Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan 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
123,540
76,680 i
4,260 i
42,600
$
Net Income
Increase (Decrease)
123,540
76,680
4,260
42,600
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