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Determineincremental income that pederson enterprises

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Reference no: EM132742016

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. This is a one-time order and acceptance of this proposal will not affect the company's regular sales. Pederson will incur extra shipping costs of $1 per bear.

Instructions:

Problem 1: Determine the incremental income or loss that Pederson Enterprises would realize by accepting the special order.

Reference no: EM132742016

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