At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 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. (45).)

Respuesta :

Zviko

Answer:

Net Income  Bargain Electronics would realize by accepting the special order is  - $ 24,000

Explanation:

Bargain Electronics is operating at full capacity, therefore the fixed costs are relevant at this decision.

Incremental Costs and Revenues - Special Order 3000 units

Sales ( 3000 × $25)                                     75,000

Variable Cost (3000× $20)                         (60,000)

Fixed Costs (3000× $10)                             (30,000)

Shipping Costs ( 3000×$3)                          (9,000)

Net Income                                                   -24,000

The net income (loss) Bargain Electronics would realize by accepting the special order should be $6,000.

Calculation of the net income or loss:

Here we considered the following table

So,

                  Units Per unit $                   Total

Sales              3,000.00    * 25                 $ 75,000.00

Variable Cost  3,000.00    *20                       $ 60,000.00

Shipping cost    3,000.00 * 3                      $   9,000.00

Net Income $    6,000.00

Hence, The net income (loss) Bargain Electronics would realize by accepting the special order should be $6,000.

Learn more about net income here: https://brainly.com/question/6659226