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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 11,000 units without considering the special order. Budget information for the current year follows.

Sales

$ 231,000

Less: Cost of goods sold

165,000

Gross margin

$ 66,000

Cost of goods sold includes $44,000 of fixed manufacturing cost. If the special order is accepted, the company's income will:

Group of answer choices

increase by $22,500.

increase by $4,500.

decrease by $4,500.

decrease by $22,500.

None of these.

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