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Elkhorn, Inc., which has excess capacity, received a special order for 4,700 units at a price of $17 per unit. Currently, production and sales are
Elkhorn, Inc., which has excess capacity, received a special order for 4,700 units at a price of $17 per unit. Currently, production and sales are anticipated to be 13,000 units without considering the special order. The variable component of cost of goods sold per unit is $6 per unit.If the special order is accepted, the company's income will:
increase by $51,700.
increase by $28,200.
decrease by $51,700.
None of the answers is correct.
decrease by $28,200.
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