Based on the following information: If the special order is accepted, what is the specific change in income for only the special order? What recommendation would you provide to management either accepting or rejecting this special order?

Snider, Inc., which has excess capacity, received a special order for 3,000 units at a price of $14 per unit which it could produce with the excess capacity.

Currently, production and sales are anticipated to be 10,000 units without considering the special order.

Cost of goods sold includes $30,000 of fixed manufacturing cost.

Below is budget information for the current year sales of 10,000 units follows.

Sales

$200,000

Less: cost of goods sold

150,000

Gross Margin

$50,000