Question
16If a company has sufficient excess capacity to accept a special order without affecting its regular sales, the company should accept the order if: a.the
16If a company has sufficient excess capacity to accept a special order without affecting its regular sales, the company should accept the order if:
a.the total incremental revenue of the special order is greater than the total incremental costs of the special order.
b.the special order can be filled with products already manufactured.
c.the per unit selling price of the special order is greater than the per unit selling price normally charged for the product.
d.the special order does not require changes to its regular product.
8If the net present value of a project is exactly zero, based on a discount rate of 10%, then the internal rate of return is:
a.equal to 10%.
b.less than 10%.
c.greater than 10%.
d.cannot be determined from this data.
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