Bluebird Mfg

question 136

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 effect on net income will be:

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

---

Definitions:

High Earnings

describe a significant amount of income or profit, typically above the average or expected in a certain context or profession.

Dropout Rates

The percentage of individuals who fail to complete a particular educational level or program.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or religion, distinguishing them from other groups.

Adolescents

Adolescents refer to young people in the transitional stage from childhood to adulthood, typically ranging from ages 10 to 19.