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Determine the incremental income or loss

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Reference no: EM132511030

Point : Bradley Toys produces giant stuffed bears. Each bear consists of $13 of variable costs and $9 of fixed costs and sells for $45. A wholesaler offers to buy 8,500 bears from Bradley at $18 each, of which Bradley has the capacity to produce. If Bradley accepts this special order, Bradley will incur extra shipping costs of $2 per bear.

Question 1: Determine the incremental income or loss that Bradley Toys would realize by accepting the special order.

Reference no: EM132511030

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