https/ ECTIONAL EXAM-100 Exam Points 6 Help Seve & Exit Submi Eluebird Mfg. has

Question

https/ ECTIONAL EXAM-100 Exam Points 6 Help Seve & Exit Submi Eluebird Mfg. has received a special one-time order for 15,000 bird feeders at $200 per unit. Bluebird currently produces and sells 75.000 units at $600 each This level represents 80% of its capacity These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $340 per unit, which includes $175 variable cost and $1.65 fixed cost. f Bluebird accepts this additional business, the effect on net income will be: Multiple Choice $30,000 increase.

Explanation / Answer

contribution on special order selling price 2 less variable cost per unit 1.75 contribution on special order 0.25 net increase in income 15000*.25 = 3750 $3,750 increase answer

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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