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Russ Company Is Trying to Determine Whether to Accept a 1,000

Question 28

Multiple Choice

Russ Company is trying to determine whether to accept a 1,000 unit special sales order. Russ doesn'thave the capacity to accept the special sales order without losing 250 units of sales to regularcustomers. What is the least that Russ would be willing to accept for the 1,000 units?


A) The variable costs of producing and selling the 1,000 units.
B) The variable and fixed costs of producing and selling the 1,000 units.
C) The incremental cost of producing and selling the 1,000 units plus the opportunity cost
Associated with the loss of sales to regular customers.
D) The per unit sales price paid by the regular customers.

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