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Cullumber Enterprises produces giant stuffed bears. Each bear consists of $14 of variable costs and $11 of fixed costs and sells for $47. A wholesaler
Cullumber Enterprises produces giant stuffed bears. Each bear consists of $14 of variable costs and $11 of fixed costs and sells for $47. A wholesaler offers to buy 6,720 units at $16 each, for which Cullumber has the capacity to produce. Cullumber will incur extra shipping costs of $1 per bear. Determine the incremental income or loss that Cullumber Enterprises would realize by accepting the special order.
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