Bluebird Manufacturing has received a special one-time order for 16,200 bird feeders at $4.20 per unit. Bluebird currently produces and sells 75,000 units at $8.20 each. This level represents 80% of its capacity. Production costs for these units are $4.70 per unit, which includes $3.45 of variable costs and $2.45 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be:
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Bluebird Manufacturing has received a special one-time order for 16,200 bird feeders at $4.20 per un...
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