Question
Pederson Enterprises produces giant stuffed bears. Each bear consists of $13 of variable costs and $10 of fixed costs and sells for $35. A wholesaler
Pederson Enterprises produces giant stuffed bears. Each bear consists of $13 of variable costs and $10 of fixed costs and sells for $35. A wholesaler offers to buy 6,500 units at $14 each, of which Pederson has the capacity to produce. Pederson will incur extra shipping costs of $1.2 per bear Instructions Using the table below, determine the incremental income or loss that Pederson Enterprises would realize by accepting the special .order INCREMENTAL NET INCOME ACCEPT ORDER REJECT ORDER REVENUE VARIABLE COSTS SHIPPING COST TOTAL COST NET INCOME ?What should be the decision of the company? REJECT or ACCEPT the special order
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