Problem: Pharoah 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 8,260 units at $14 each, for which Pharoah has the capacity to produce. Pharoah will incur extra shipping costs of $1 per bear.
Determine the incremental income or loss that Pharoah Enterprises would realize by accepting the special order.