A Company Is Contemplating the Acceptance of a Special Order

Multiple Choice

A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer's name on the product. Which of the following is likely?

A) Total variable costs will be irrelevant.
B) Only variable costs will be relevant.
C) Only fixed costs will be relevant.
D) Both variable and fixed costs will be relevant.