Bluebird Mfg

question 36

Multiple Choice

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the incremental revenue will be:

• A) $45,000.
• B) $11,250.
• C) $33,750.
• D) $7,500.
• E) $52,500.

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Definitions:

Ethical Standards

Principles that guide conduct and decision making based on notions of right and wrong.

Justice Issues

Concerns or disputes arising over what is morally right or fair, often relating to the equitable distribution of resources or treatment of individuals.

Instrumental Values

Basic convictions about modes of conduct and desirable end-states that act as guiding principles in one's life.

Terminal Values

End goals or desired outcomes in life that individuals strive to achieve, such as happiness, success, and prosperity.