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If the Firm Is at Full Capacity, the Minimum Special-Order

Question 3

Multiple Choice

If the firm is at full capacity, the minimum special-order price must cover


A) variable costs associated with the special order.
B) variable and fixed manufacturing costs associated with the special order.
C) variable and incremental fixed costs associated with the special order.
D) variable costs and incremental fixed costs associated with the special order, plus foregone contribution margin on regular units not produced.

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