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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 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
Question 1: 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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