At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make...
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At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player at full capacity that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
RejectOrder
AcceptOrder
Net IncomeIncrease (Decrease)
Revenues
$
$
Costs-Manufacturing
shipping
Net income
$
The special order should be
Reject or expect
Answer & Explanation
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