Pederson Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs and $9 of fixed costs and sells for $45. A wholesaler offers to buy 8,000 units at $14 each, of which Pederson has the capacity to produce. Pederson will incur extra shipping costs of $1.25 per bear.
Instructions
Determine the incremental income or loss that Pederson Enterprises would realize by accepting the special order.

Question

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The Answer of Pederson Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs and $9 of fixed costs and sells for $45. A wholesaler offers to buy 8,000 units at $14 each, of which Pederson has the capacity to produce. Pederson will incur extra shipping costs of $1.25 per bear.
Instructions
Determine the incremental income or loss that Pederson Enterprises would realize by accepting the special order.

Pederson Enterprises Produces Giant Stuffed Bears