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Two months ago, Victory Corporation purchased 4, 500 pounds of Hydrol, paying $15, 300. The demand for this product has been very strong since the
Two months ago, Victory Corporation purchased 4, 500 pounds of Hydrol, paying $15, 300. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.50 per pound. (Victory can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 4, 200 pounds of Hydrol. Which of the following is (are) relevant in deciding whether accept the special order? Which of the following is (are) accept the special order? A. The 300-pound remaining inventory of Hydrol. B. The $4.05 market price. C. The $3.40 purchase price. D. 4, 500 pounds of Hydrol. E. Two or more of the other factors are relevant. Flowers Company is operating at capacity and desires to add a new service to its rapidly expanding business. The service should be added as long as service revenues exceed: A. variable costs. B. fixed costs. C. the sum of variable costs and fixed costs. D. the sum of variable costs and any related opportunity costs. E. the sum of variable costs, fixed costs, and any related opportunity costs
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