Hi expert please give me answer accounting questions Sunset Electronics incurs a cost of $42.75 per unit, of which $23.50is variable, to make a product that normally sells for $65.00. Aretail chain offers to buy 4,800 units at $37.25 each. Sunset willincur additional packaging and shipping costs of $2.85 per unit.Calculate the increase or decrease in net income Sunset will realizeby accepting the special order, assuming Sunset has sufficientexcess operating capacity.

Step 1: Definition of Relevant Costs and Incremental IncomeFor special orders, only relevant costs…

Answered: Sunset Electronics incurs a cost of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you please check my work
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 6,000 units at $14 each, of which Pederson has the capacity to produce. Pederson will incur extra shipping costs of $1 per bear. What is the incremental income or loss that Pederson Enterprises would realize by accepting the special order? Should Pederson Enterprises accept the special order? lyi HH 99+

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