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If a Special Order Results in a Positive Contribution Margin

Question 137

Multiple Choice

If a special order results in a positive contribution margin of $8 when the contribution margin for regular orders is $15, which of the following decisions is the most likely to be chosen?


A) Accept the order, because $8 per unit is generated as profit
B) Reject the order, because $7 per unit is lost
C) Accept the order, but only if the customer agrees to an increase in the selling price to match the $15 regular contribution margin
D) Accept the order, but only if the customer agrees to an increase of $7 in the selling price

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