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Which of the Following Statements Is Correct If a Company

Question 105

Multiple Choice

Which of the following statements is correct if a company accepts a special order without having to add capacity or affecting current sales?


A) Operating income will not be impacted.
B) Operating income will decrease if the special-order unit selling price is less than the total unit cost.
C) Operating income will increase if the special-order unit selling price is greater than the unit variable cost.
D) Fixed costs will increase.

Correct Answer:

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