Snyder, 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:
A. Increase by $2,000.
B. Decrease by $2,000.
C. Increase by $14,000.
D. Decrease by $14,000.
E. None of the other answers are correct.

Sales Less: Cost of Goods Sold Gross Margin $190,000 145.000 $ 45,000