Bluebird MFG. has received a special one time order of 15,000 bird feeders at $3.30...
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Accounting
Bluebird MFG. has received a special one time order of 15,000 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 $3.95 per unit, which include $2.40 variable cost and $1.55 fixed cost. If bluebird accepts this additional buiness, the effect on net income will be:
A. $49,500 Increase
B. $13,500 Increase
C. $36,000 Increase
D. $9,750 Decrease
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