Brief Exercise 20-3 At Bargain Electronics, it costs $31 per unit ($18 variable

Question

Brief Exercise 20-3 At Bargain Electronics, it costs $31 per unit ($18 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 4,010 units at $29 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 Net Income Increase (Decrease) Order Revenues Costs-Manufacturing Shipping Net income The special order should be Click if you would like to Show Work for this question: pn Show Work

Explanation / Answer

Reject Order Accept Order Net income increase(decrease) Revenues 0 116290 116290 Costs-Manufacturing 0 -72180 -72180 shipping 0 -12030 -12030 Net income 0 32080 32080 The special order should be accepted

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.