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zubka84 [21]
3 years ago
7

At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally

sells for $55. A foreign wholesaler offers to buy 4,960 units at $24 each. Bargain Electronics will incur special shipping costs of S4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Reject Accept Net Income
Order order Increase
(Decrease)
Revenues $ $ $
Cost-Manufacturing
Shipping
Net Income $ $ $
The special order should be:______.
Business
1 answer:
stiks02 [169]3 years ago
8 0

Answer:

Effect on income= $0

Explanation:

<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>

Effect on income= total sales revenue - total variable cost

Effect on income= 24*4,960 - (20 + 4)*4,960

Effect on income= $0

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3 years ago
A firm is considering two projects. Project Peso requires an initial investment of $100,000. The Internal Rate of Return for Pro
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to accept both the projects i.e. Project Peso and Project Quasi

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The same would be relevant

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3 years ago
A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., ye
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Answer:

142.5

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52) upon receiving notice from their electric utility that customers with solar power systems are permitted to sell excess power
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2 years ago
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Answer:

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