Respuesta :
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.
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