At bargain electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an mp3 player at full capacity that normally sells for $51. a foreign wholesaler offers to buy 3,580 units at $28 each. bargain electronics will incur special shipping costs of $3 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. ( should the order be accepted or rejected?

(17,900) net loss

Explanation:

51 - 16 = 35

Special order Contribution margin

28 sales price - 16 variable cost - 3 shipping cost = 9

Total contribution for the order

3,580 units x 9 CM= 32,220

3,580 x 14 fixed cost = (50,120)

(17,900) net loss

We should assume the fixed cost will increase because we are at full capacity.

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best of luck,

the divergent