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Snider, Inc., which has excess capacity, received a special order for 3,000 units at a price of $15 per unit which it could produce with

Snider, Inc., which has excess capacity, received a special order for 3,000 units at a price of $15 per unit which it could produce with the excess capacity.
Current production and sales are anticipated to be 10,000 units without considering the special order.
Total Cost of Goods Sold below includes $40,000 of fixed manufacturing cost.
Below is budget information for the current year sales of 10,000 units follows.
Sales $180,000
Less: Cost of Goods Sold 140,000
Gross Margin $40,000
Required:
If the special order is accepted, calculate the specific change in income for only the special order. Make sure you show your work.
Provide a recommendation to management if the company should accept or reject this special order. Explain in detail your recommendation to management.

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