A Company Is Within Plant Capacity

Multiple Choice

A company is within plant capacity. It is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur?

A) Incremental costs will not be affected.
B) Net income will increase if the special sales price per unit exceeds the unit variable costs.
C) There are no incremental revenues.
D) Both fixed and variable costs will increase.