Copper Top, which has excess capacity, received a special order for 3,000 units at a price of R14 per unit. Currently, production and sales are budgeted for 10,000 units without considering the special order. Budget information for the current year follows. SalesR170,000Less: Cost of goods sold 130,000Gross marginR 40,000 Cost of goods sold includes R30,000 of fixed manufacturing cost.If the special order is accepted, indicate the impact on the company's income as follow: increase or decrease the amount of the increase decrease R

The impact on the company's income due to the special order is calculated by determining the…

Answered: Copper Top, which has excess capacity,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

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Copper Top, which has excess capacity, received a special order for 3,000 units at a price of R14 per unit. Currently, production and sales are budgeted for 10,000 units without considering the special order. Budget information for the current year follows.

Sales	R170,000
Less: Cost of goods sold	130,000
Gross margin	R 40,000

Cost of goods sold includes R30,000 of fixed manufacturing cost.

If the special order is accepted, indicate the impact on the company's income as follow:

increase or decrease
the amount of the increase decrease R

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