Flat Tire Inc. mass produces giant stuffed teddy bears. Each bear consists of $ 33 of
variable costs and $ 14 of fixed costs and sells for $ 75. An overseas wholesaler has offered
to buy 2,000 units at $35 each, for which the company has the capacity to produce. Flat Tire will incur
extra shipping costs of $ 5 per bear.
Determine the incremental income or loss that Pooh would realize by accepting the special order.

Q&A Education