Question

12. If a company must expand capacity to accept a special order, it is likely that there will be A) an increase in unit variable costs. B) no increase in fixed costs. C) an increase in variable and fixed costs per unit. D) an increase in fixed costs. 13. 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 A) only variable costs are relevant. B) fixed costs are not relevant. C) the order will likely be accepted. D) the order will likely be rejected.

Answer 1

A on increase in unit variable et nce the company expand its units for the normal copacity additional cost will be added and is an additional units. Inches units means increase in unit variable cost. 13) at full since it is the capocits, en additional meon higher especial order Cone-times would coco fixed Equipment and this would expense, there fore, the answer would be too. The order will likely be rejded.