Business, 27.03.2020 21:53 twitter505567

53. Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $22 per DVD player for 10,000 DVD players. Blue Technologies' normal selling price is $33 per DVD player. The total manufacturing cost per DVD player is $14 and consists of variable costs of $10 per DVD player and fixed overhead costs of $5 per DVD player. (NOTE: Assume excess capacity and no effect on regular sales.)

Should Blue Technologies accept or reject the special sales order?

A) Accept, because operating income would increase $360,000.

B) Reject, because operating income would decrease $80,000.

C) Accept, because operating income would increase $80,000.

D) Reject, because operating income would decrease $160,000.

Answers: 2

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53. Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Te...