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CullumberEnterprises produces giant stuffed bears. Each bear consists of $14of variable costs and...

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Accounting

CullumberEnterprises produces giant stuffed bears. Each
bear consists of $14of variable costs and $11of fixed
costs and sells for $47. A wholesaler offers to
buy6,720units at $16each, for
whichCullumberhas the capacity to
produce.Cullumberwill incur extra shipping costs of
$1per bear.
Determine the incremental income or loss
thatCullumberEnterprises would realize by accepting the
special order
Crane Enterprises produces giant stuffed bears. Each bear consists of $14 of variable costs and $11 of fixed costs and sells for $47. A wholesaler offers to buy 8,320 units at $16 each, for which Crane has the capacity to produce. Crane will incur extra shipping costs of $1 per bear.
Determine the incremental income or loss that Crane Enterprises would realize by accepting the special order.
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