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Determine the incremental income or loss

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McIntosh 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 McIntosh has the capacity to produce. McIntosh will incur extra shipping costs of  $1.25 per bear.

Determine the incremental income or loss that McIntosh Enterprise would realize by accepting the special order.

 

Reference no: EM13506082

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