If a plant is operating at full capacity and receives a one-time opportunity to accept an...
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.
Homework Answers
Answer : D) the order will Likely be Rejected
If the Plant is Running With the Full Capacity, Acceptance of any Special order will Reduce the Regular Sales, So Special order Must be Provide the more than the Regular Price otherwise net operating income Will be reduced.
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