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Determine the incremental income or loss

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Problem - Pederson Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs and $9 of ?xed 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 per bear. Determine the incremental income or loss that Pederson Enterprises would realize by accepting the special order.

Reference no: EM132739264

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