At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player 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 $3 per unit. Assuming that Bargain Electronics has excess operating capacity.
Required:
Indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Answers: 3
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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player tha...
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