Read the case study “Over-land Trucking and Freight: Relevant Costs for Decision Making” and answer the following question:

Assume Over-land could service the contract with existing equipment. Identify the relevant costs concerning the acceptance of FHP’s request to add two additional loads per week. Which costs are not relevant? Why?

Answer rating: 100% (QA)

The FHP contract does not affect the fixed cost and thus the cost is expected to remain constant wi... View the full answer