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Elkhorn, Inc., which has excess capacity, recelved a special order for 4,500 units at a price of $16 per unit. Currently. production and sales are
Elkhorn, Inc., which has excess capacity, recelved a special order for 4,500 units at a price of $16 per unit. Currently. production and sales are anticipated to be 11,000 units without considering the special order. Budget information for the current year follows. Sales Less: cost of goods sold Gross margin $231,000 165,000 66,000 Cost of goods sold includes $44,000 of fixed manufacturing cost. If the special order is accepted, the company's income will: Multsple Choice increase by $4,500 decrease by $4,500 increase by $22,500. decrease by $22,500. None of the answers is correct
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