If an entity has sufficient spare capacity it is more likely to accept a special order because:
A) under these circumstances any order will be profitable.
B) management will not want to have employees idle.
C) there is no opportunity cost to accepting the order.
D) customers will always be willing to pay more for special orders.
Correct Answer:
Verified
Q49: If the contribution margin ratio is 25%,fixed
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Q51: If variable costs are 60% of sales
Q52: In deciding whether to undertake a special
Q53: The _ point occurs when total sales
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Q56: As production increases,unit fixed costs (increase/decrease)_.
Q58: When making decisions about special orders:
A)if there
Q59: The range over which an entity expects
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