In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the case where the plant has excess capacity? O incremental fixed costs and variable costs O incremental fixed costs only Ovariable costs only O incremental fixed costs and sunk costs Ovariable costs and sunk costs

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the
case where the plant has excess capacity?
O incremental fixed costs and variable costs
O incremental fixed costs only
Ovariable costs only
O incremental fixed costs and sunk costs
Ovariable costs and sunk costs
Transcribed Image Text:In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the case where the plant has excess capacity? O incremental fixed costs and variable costs O incremental fixed costs only Ovariable costs only O incremental fixed costs and sunk costs Ovariable costs and sunk costs
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