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When There Is Limited Capacity, the Minimum Acceptable Price for a "Special

Question 8

Multiple Choice

When there is limited capacity, the minimum acceptable price for a "special sales order" should equal the ________ from the product that is sacrificed plus the incremental costs of the product being produced.


A) Selling price
B) Full cost
C) Variable cost
D) Contribution margin
E) Gross profit

Correct Answer:

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