Question: If we have to decide whether or not to accept a special order from a client of ours, knowing that we would operate at full
If we have to decide whether or not to accept a special order from a client of ours, knowing that we would operate at full capacity in that situation, we would compare the sales price of said order, expecting it to exceed
to
only the variable cost of current production.
b
the fixed cost of the special order and the contribution margin of the other alternative.
c
variable cost of current production and the contribution margin provided by the other alternative.
d
only the contribution margin provided by the other alternative.
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