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Question - Redbird Mfg. has received a special one-time order for 10,000 bird feeders at $25 per unit. Redbird currently produces and sells 100,000 units at $30.00 each. These bird feeders would be marketed under the wholesaler's name and Redbird's managers estimate that sales through its normal channels would be reduced by 2,000 units. Production costs for all units are $17.50 per unit, which includes $12.50 in variable costs and $5.00 of fixed costs. Assume that Redbird has sufficient capacity to fill the order, should Redbird accept the order? If no answer with a zero (use 0). If yes answer with the total amount of incremental profit.
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