Differential analysis would be appropriate for Question 5 options: acceptance of an order at a special price. a retain or replace equipment decision. a sell or process further decision. all of these answer choices are correct. Preston Company manufactures a product with a unit variable cost of $140 and a unit sales price of $264. Fixed manufacturing costs were $720,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 3,000 units at $210 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Question 6 options: Income would decrease by $162,000. Income would increase by $6,000. Income would increase by $210,000. Income would increase by $156,000. If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then Question 7 options: the order will likely be rejected. only variable costs are relevant. the order will likely be accepted. fixed costs are not relevant. De Longo Inc. has excess capacity. Under what situations should the company accept a special order for less than the current selling price? Question 8 options: Never When differential revenues exceed differential costs When the company thinks it can use the cheaper materials without the customer's knowledge When additional fixed costs must be incurred to accommodate the order. An opportunity cost Question 9 options: is the potential benefit that may be obtained by following an alternative course of action. should be initially recorded as an asset. is classified as manufacturing overhead. is the cost of a new product proposal. Each of the following is a disadvantage of buying rather than making a component of a company's product except that Question 10 options: the supplier may not deliver on time. quality control specifications may not be met. profitable product lines may be dropped. the outside supplier could increase prices significantly in the future.