Brigg Enterprises produces miniature parasols. Each parasol consists of $1.20 of variable costs and $.90 of fixed costs and sells for $4.50. A French wholesaler offers to buy 8000 units at $1.40 each of which Brigg has the capacity to produce. Brigg will incur extra shipping costs of $.12 per parasol.
Instructions
Determine the incremental income or loss that Brigg Enterprises would realize by accepting the special order.

Question

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The Answer of Brigg Enterprises produces miniature parasols. Each parasol consists of $1.20 of variable costs and $.90 of fixed costs and sells for $4.50. A French wholesaler offers to buy 8000 units at $1.40 each of which Brigg has the capacity to produce. Brigg will incur extra shipping costs of $.12 per parasol.
Instructions
Determine the incremental income or loss that Brigg Enterprises would realize by accepting the special order.

Brigg Enterprises Produces Miniature Parasols