Description of this paper

Loading

Pederson Enterprises produces giant stuffed bears. Each bear-(Answered)

Description

Instant Solution ? Click "Buy button" to Download the solution File


Question

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. 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. See attached image:


 

Paper#9210090 | Written in 27-Jul-2016

Price : $19
SiteLock