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Snyder, Inc., which has excess capacity, received a special order for 4,500 units at a price of $16 per unit. Currently, production and sales are
Snyder, Inc., which has excess capacity, received a special order for 4,500 units at a price of $16 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 |
Less: Cost of goods sold | 151,000 |
Gross margin | $ 59,000 |
Cost of goods sold includes $21,000 of fixed manufacturing cost. If the special order is accepted, the company's income will:
increase by $4,050. | |
decrease by $4,050. | |
increase by $13,500. | |
decrease by $13,500. | |
None of these. |
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