Assuming that bargain electronics has excess operating


At Bargain Electronics, it costs $34 per unit ($15 variable and $19 fixed) to make an MP3 player at full capacity that normally sells for $53. A foreign wholesaler offers to buy 3,180 units at $29 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.

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Accounting Basics: Assuming that bargain electronics has excess operating
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