Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income. A company accepts incremental business at a special price that exceeds the variable cost. What other issues must the company consider in deciding whether to accept the business?

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Q: What other issues must the company consider in deciding whether to accept the business?

A:

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A:

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Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.