At Bargain Electronics, it costs $33 per unit ($17 variable and $16 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 4,000 units at $30 each. Bargain Electronics will incur special shipping costs of $2 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
Order Accept
Order Net Income
Increase (Decrease)
Revenues $
Brief Exercise 20-3
At Bargain Electronics, it cos
$
Brief Exercise 20-3
At Bargain Electronics, it cos
$
Brief Exercise 20-3
At Bargain Electronics, it cos
Costs-Manufacturing
Brief Exercise 20-3
At Bargain Electronics, it cos
Brief Exercise 20-3
At Bargain Electronics, it cos
Brief Exercise 20-3
At Bargain Electronics, it cos
Shipping
Brief Exercise 20-3
At Bargain Electronics, it cos
Brief Exercise 20-3
At Bargain Electronics, it cos
Brief Exercise 20-3
At Bargain Electronics, it cos
Net income $
Brief Exercise 20-3
At Bargain Electronics, it cos
$
Brief Exercise 20-3
At Bargain Electronics, it cos
$
Brief Exercise 20-3
At Bargain Electronics, it cos
The special order should be
Brief Exercise 20-3
At Bargain Electronics, it cos rejected/accepted
Warning