Business, 18.12.2019 02:31 myparentsrock17

Elkhorn, inc., which has excess capacity, received a special order for 4,000 units at a price of $15 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 $ 190,000
less: cost of goods sold 145,000
gross margin $ 45,000
cost of goods sold includes $30,000 of fixed manufacturing cost. if the special order is accepted, the company's income will:

increase by $2,000.

decrease by $14,000.

decrease by $2,000.

increase by $14,000.

none of the answers is correct.

Answers: 2

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Elkhorn, inc., which has excess capacity, received a special order for 4,000 units at a price of $15...