Bluebird Mfg

question 118

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 cost will be:

• A)$45,000.
• B)$11,250.
• C)$38,750.
• D)$7,500.
• E)$33,750.

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Definitions:

Common Law

A legal system based on judicial decisions and precedent, rather than statutory laws.

Article 2

This typically refers to a section of a larger body of law or document, but without more context, it could relate to various legal systems or documents. Specific identification requires additional information.

Common Law of Contracts

The body of law that governs contract formation, interpretation, and enforcement, primarily derived from court rulings and precedents rather than statutes.

Tender of Goods

The offer by a seller to deliver goods to a buyer that matches the terms of the contract, including quality, quantity, and method of delivery.