Relevant costs in a special order decision include all of the following except
A) Direct materials costs of $3 per unit
B) Fixed cost of $1500 for rental of a machine needed to produce the order
C) Contribution margin per unit of regular sales when there is sufficient capacity to produce the order
D) Unusual shipping charges paid by Solo of $4 per unit for the special order

Question

Quizplus · Accepted Answer

Contribution margin per unit of regular sales is not relevant when there is sufficient capacity to produce the special order, as it does not affect the decision to accept or reject the special order.

Relevant Costs in a Special Order Decision Include All of the Following