A manager should always reject a special order if

Question

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A manager should always reject a special order if the special order price is less than the variable costs of the order. This is because accepting the order would result in a loss for the company. The other options (A, C, and D) are not necessarily reasons to reject a special order. Available excess capacity may still result in a profit from the order, a special order price lower than the regular sales price may still result in a profit if the variable costs are lower, and variable nonmanufacturing expenses may still be covered by the profit from the order.

A Manager Should Always Reject a Special Order If