Business, 08.08.2021 23:30 elawnnalewis4855
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.70 per unit. Bluebird currently produces and sells 75,000 units at $7.70 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $4.55 per unit, which includes $2.60 variable cost and $1.95 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
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Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.70 per unit. Blueb...
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