1. McIntosh Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs, $9 of fixed costs, and sells for $45. A wholesaler offers to buy 8,000 units at $14 each of which McIntosh has the capacity to produce. McIntosh will incur extra shipping costs of $1.25 per bear. Instructions Determine the incremental income or loss that McIntosh Enterprises would realize by accepting the special order.
1. McIntosh Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs, $9 of fixed costs, and sells for $45. A wholesaler offers to buy 8,000 units at $14 each of which McIntosh has the capacity to produce. McIntosh will incur extra shipping costs of $1.25 per bear. Instructions Determine the incremental income or loss that McIntosh Enterprises would realize by accepting the special order.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
100%

Transcribed Image Text:1. McIntosh Enterprises produces giant stuffed bears. Each bear consists of $12 of variable
costs, $9 of fixed costs, and sells for $45. A wholesaler offers to buy 8,000 units at $14
each of which McIntosh has the capacity to produce. McIntosh will incur extra shipping
costs of $1.25 per bear.
Instructions
Determine the incremental income or loss that McIntosh Enterprises would realize by accepting
the special order.
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