Which of the following reasons would cause a company to reject an offer to accept business at a special price?
A)The additional sale will not conflict with regular sales.
B)The additional sales will increase differential profit.
C)The additional sales will not increase fixed expenses.
D)The additional sales will increase fixed expenses.

Question

Quizplus · Accepted Answer

Accepting business at a special price can be beneficial if it increases differential profit without affecting regular sales or significantly increasing fixed expenses. However, if the additional sales increase fixed expenses, it could lead to a situation where the overall profitability of the company is negatively impacted, making it a valid reason for a company to reject such an offer.

Which of the Following Reasons Would Cause a Company to Reject