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Felix, Inc., which has excess capacity, received a special order for 5,000 units at a price of $15 per unit. Currently, production and sales are
Felix, Inc., which has excess capacity, received a special order for 5,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows.
Sales $210,000
- Cost of goods sold 155,000
Gross margin 55,000 Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, will the company's income be increased or decreased? By how much?
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