Bluebird Manufacturing has received a special one-time order for 15,300 bird feeders at $3.30 per...

50.1K

Verified Solution

Question

Accounting

image

image

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students