(Solved):Disney Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs and…

 

Question

Disney 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 Disney has the capacity to produce. Disney will incur extra shipping costs of $1.25 per bear.

a) What is the incremental revenue for this special order?

b) What is the total incremental income or loss that Disney

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