rief Exercise 20-03
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. (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) |
|||||
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Revenues | $enter revenues in dollars | $enter revenues in dollars | $enter revenues in dollars | ||||
Costs—Variable manufacturing | enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | enter variable manufacturing costs in dollars | ||||
Shipping | enter shipping costs in dollars | enter shipping costs in dollars | enter shipping costs in dollars | ||||
Net income | $enter net income in dollars | $enter net income in dollars | $enter net income in dollars |
The special order should be select an option
acceptedrejected . |
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