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Flowers Company Is Operating at Capacity and Desires to Add

Question 38

Multiple Choice

Flowers Company is operating at capacity and desires to add a new service to its rapidly expanding business. The service should be added as long as service revenues exceed:


A) variable costs.
B) fixed costs.
C) the sum of variable costs and fixed costs.
D) the sum of variable costs and any related opportunity costs.
E) the sum of variable costs, fixed costs, and any related opportunity costs.

Correct Answer:

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