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Question 16 (2.5 points) Which of the following statement about special order is correct? If the idle capacity is not enough to meet the demand
Question 16 (2.5 points) Which of the following statement about special order is correct? If the idle capacity is not enough to meet the demand of the special order, the company should go with the most profitable option by comparing the profit between two scenarios: accept the order, reject the order. If the idle capacity is enough to meet the demand of the special order, as long as the contribution margin of the special order is greater than zero, the company should accept the order. If there is no idle capacity at all, the company should accept the order as long as the contribution margin of the special order is greater than that of the regular sales. All of the above Previous Page Next Page
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