Elkhorn, Inc., which has excess capacity, received a special order for 4,000 units at a...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
