ACC 561-At Bargain Electronics, it costs $29 per unit ($17 variable and $12 fixed) to make
Question # 00323312
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Updated on: 06/24/2016 06:24 AM Due on: 06/24/2016

At Bargain Electronics, it costs $29 per unit ($17 variable and $12 fixed) to make an MP3 player at full capacity that normally sells for $53. A foreign wholesaler offers to buy 4,510 units at $28 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain 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).)
Reject Order | Accept Order | Net Income Increase (Decrease) | |
Revenues | $ | $ | $ |
Costs-Manufacturing | |||
Shipping | |||
Net income | $ | $ | $ |
The special order should be acceptedrejected |

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Rating:
5/
Solution: ACC 561-At Bargain Electronics, it costs $29 per unit ($17 variable and $12 fixed) to make