Requirement 2.

SuperBan's marketing manager, Peter Stenback, argues against accepting the special order because the offer price of $81 is less than SuperBan's $83 cost to make the sunglasses. Stenback asks you, as one of SuperBan's staff accountants, to explain whether his analysis is correct. What would you say?

When deciding whether to accept a special order, we should compare the revenues prior to filling the order against the extra costs we will incur to fill the order. revenues we will receive against the differential costs prior to filling the order. revenues we will receive against the differential costs we will incur to fill the order. revenues prior to filling the order against the extra costs we will incur to fill the order. Costs that we will incur whether or not we fill the order are irrelevant irrelevant relevant to our decision. This is why comparing the $81 price Nevada Shades offered us with our $83 total cost of making the sunglasses is incorrect correct

.Which one is correct?

Click to select your answer(s) and then click Check Answer.