Business, 05.07.2019 22:20 jennaranelli05

Cuddly toys makes a large teddy bear that currently sells for $62 per bear. at a production level of 20,000 per year, the bears have a total unit cost of $50 per bear. the total unit cost is comprised of variable costs of $45 per bear and fixed costs of $5 per bear (or total fixed costs of 100,000/20,000 bears). cuddly toys has excess capacity to manufacture 15,000 more bears. the company has been approached by a new customer, who wants to buy 5,000 large bears for $47 apiece. what is the effect on operating profit if the special order is accepted?

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Cuddly toys makes a large teddy bear that currently sells for $62 per bear. at a production level of...