Accepting or rejecting new business: The decision of expansion of business is done on the basis of incremental revenue. If any decision of doing business adds more than it takes way, the decision is taken to expand. Care is taken to include only relevant costs, and sunk costs need to be avoided. To describe: A situation under which the company is selling an additional 8,000 units of the product in an international market at $5,000 per unit.

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Chapter 23, Problem 10DQ

To determine

Accepting or rejecting new business:

The decision of expansion of business is done on the basis of incremental revenue. If any decision of doing business adds more than it takes way, the decision is taken to expand. Care is taken to include only relevant costs, and sunk costs need to be avoided.

To describe: A situation under which the company is selling an additional 8,000 units of the product in an international market at $5,000 per unit.

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