Question
When making a decision to accept additional production work a manager needs to look closely at which of the following: The additional revenue should be
When making a decision to accept additional production work a manager needs to look closely at which of the following:
The additional revenue should be at least 25% above the current revenue without the additional production work | ||
The incremental or differential costs of the additional work should not exceed incremental or differential revenue | ||
The additional production should exceed the current capacity by no more than 15% | ||
The combined incremental or differential costs of production should exceed the incremental or differential revenue of the total production run by 15% |
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