Flip enterprises produces miniature parasols each parasol

Reference no: EM13588422

Flip Enterprises produces miniature parasols. Each parasol consists of $1.20 of variable costs and $.90 of fixed costs and sells for $4.50. A Dutch wholesaler offers to buy 8,000 units at $1.40 each, of which Pederson has the capacity to produce. Flip will incur extra shipping costs of $.12 per bear.

Instructions: Determine the incremental income or loss that Flip Enterprises would realize by accepting the special order.

Reference no: EM13588422

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