Should specialty produce and sell the additional bulbs

Reference no: EM13262970

Specialty Light Bulbs anticipates selling 3,000 light bulbs this year at a price of $14 per bulb. It costs Specialty $10 in variable costs to produce each light bulb, and the fixed costs for the firm are $10,000. Specialty has an opportunity to sell an additional 1,000 bulbs next year at the same price and variable cost, but by doing so the firm will incur an additional fixed cost of $3,000. Should Specialty produce and sell the additional bulbs?

Reference no: EM13262970

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