Question
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: increase by $4,500. decrease by $4,500. increase by $22,500. decrease by $22,500. None of these.
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