Respond that the following statements are TRUE or FALSE:

1) Special sales orders increase operating income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order.

2) In deciding whether to accept a special sales order, management should only consider the quantitative data and disregard qualitative factors.

3) Fixed costs are relevant to a special sales order decision if those fixed costs are subject to change as a result of the special order.

4) Revenue at the market price less the desired operating income equals the product's target full product cost.

5) Price-setters emphasize a cost-plus pricing approach.

Answer rating: 100% (QA)

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