Bluebird Manufacturing has received a special one-time order for 16,100 bird feeders at $4.10 per...
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Bluebird Manufacturing has received a special one-time order for 16,100 bird feeders at $4.10 per unit. Bluebird currently produces and sells 75,000 units at $8.10 each. This level represents 80% of its capacity Production costs for these units are $4.60 includes $3.35 of variable costs and $2.35 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 O O $8,050 decrease. $66,010 Increase. $53,935 Increase. $12.075 Increase. $53,935 decrease.
Bluebird Manufacturing has received a special one-time order for 16,100 bird feeders at $4.10 per unit. Bluebird currently produces and sells 75,000 units at $8.10 each. This level represents 80% of its capacity Production costs for these units are $4.60 includes $3.35 of variable costs and $2.35 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 O O $8,050 decrease. $66,010 Increase. $53,935 Increase. $12.075 Increase. $53,935 decrease.
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