Bluebird Manufacturing has received a special one-time order for 15,300 bird feeders at $3.30 per...
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Bluebird Manufacturing has received a special one-time order for 15,300 bird feeders at $3.30 per unit. Bluebird currently produces and sells 75,000 units at $7.30 each. This level represents 80% of its capacity. Production costs for these units are $3.80 per unit, which includes $2.55 of variable costs and $1.55 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be: Multiple Choice $50,490 increase. $39,015 decrease. $50,490 increase. $39,015 decrease. $11,475 increase. $7,650 decrease. $39,015 increase
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