1. A company is within plant capacity. It is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur? Incremental costs will not be affected a. b. Net income will increase if the special sales price per unit exceeds the unit variable costs There are no incremental revenues c. d. Both fixed and variable costs will increase 2. Argus Company anticipates that other sales will be affected by the acceptance of a special order. What should the company do? Reject the order Consider the opportunity cost of lost sales in the incremental analysis a. b. Accept the order c. d. Accept the order if the plant is below capacity 3. A factory is operating at less than 100% capacity. Potential additional business will not use up the remainder of the plant capacity. Given the following list of costs which one should be ignored in a decision to produce additional units of product? a. Variable selling expenses b. Fixed factory overhead c. Direct labor Contribution margin of additional units d. The potential effects of the decision to eliminate a line of business on existing employees and the community are 4. a. Ignored incremental analysis b. Quantitative factors c. Qualitative factors d. Opportunity costs