When managers are deciding what price to charge for a special order, they should consider:

Question

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When managers are deciding what price to charge for a special order, they should consider both additional costs and qualitative factors. The additional costs include direct materials, direct labor, and any variable manufacturing overhead costs. Qualitative factors include the value proposition of the product, customer perception, and the competitive landscape. These factors can impact the perceived value of the product and, therefore, the price that can be charged.

When Managers Are Deciding What Price to Charge for a Special