Wagner Enterprises is contemplating accepting a special order.The company determined that the order will cause an increase in fixed costs.Should the order be accepted?

Question

Quizplus · Accepted Answer

The company should accept the special order if the incremental revenue is greater than the total incremental costs. This takes into account the additional fixed costs that will be incurred. If the incremental revenue is greater than the incremental costs, including the increase in fixed costs, then the order would generate additional profit for the company.

Wagner Enterprises Is Contemplating Accepting a Special Order