Elkhorn, Incorporated, 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 15,000 units without considering the special order. Budget information for the current year follows. Sales $ 270,000 Less: Cost of Goods Sold 219,000 Gross Margin $ 51,000 Cost of goods sold includes $39,000 of fixed manufacturing cost. If the special order is accepted, what will be the company's income?

Elkhorn, Incorporated, 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 15,000 units without considering the special order. Budget information for the current year follows. Sales $ 270,000 Less: Cost of Goods Sold 219,000 Gross Margin $ 51,000 Cost of goods sold includes $39,000 of fixed manufacturing cost. If the special order is accepted, what will be the company's income?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 15E

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