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When There Is Excess Capacity,it Makes Sense to Accept a One-Time-Only

Question 129

Multiple Choice

When there is excess capacity,it makes sense to accept a one-time-only special order for less than the current selling price when:


A) it never makes sense.
B) the company placing the order is in the same market segment as your current customers.
C) incremental revenues exceed incremental costs.
D) additional fixed costs must be incurred to accommodate the order.

Correct Answer:

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