When there is an excess capacity, it makes sense to accept a one- time-only special order for less than the current selling price if a. incremental revenues exceed incremental costs b. additional fixed costs is incurred to accommodate the order c. the company placing the order is in the same market segment as your current customers d. incremental revenue equals incremental operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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When there is an excess capacity, it makes sense to accept a one-
time-only special order for less than the current selling price if
a. incremental revenues exceed incremental costs
b. additional fixed costs is incurred to accommodate the order
c. the company placing the order is in the same market segment as
your current customers
d. incremental revenue equals incremental operating income
Transcribed Image Text:When there is an excess capacity, it makes sense to accept a one- time-only special order for less than the current selling price if a. incremental revenues exceed incremental costs b. additional fixed costs is incurred to accommodate the order c. the company placing the order is in the same market segment as your current customers d. incremental revenue equals incremental operating income
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