FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Referring to question 13, if the company had an opportunity to sell 15,000 additional units at $12 per unit, and the
additional sales would not affect its current expected sales, should the company take this special order? (Show work for
credit) A. Yes can make $30,000 B. Yes can make $90,000 C. No will lose $30,000 D. No will lose $90,000 The lowest
contribution margin per scarce resource is the most profitable. A. True B. False A cost that will not be affected by later
decisions is termed an opportunity cost. A. True B. False Eliminating a product or segment may have the long-term
effect of reducing fixed costs. A. True B. False Differential revenue is the amount of income that would result from the
best available alternative proposed use of cash. A. True B. False In deciding whether to accept business at a special
price, the short-run price should be set high enough to cover all variable costs and expenses. A. True B. False
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Transcribed Image Text:Referring to question 13, if the company had an opportunity to sell 15,000 additional units at $12 per unit, and the additional sales would not affect its current expected sales, should the company take this special order? (Show work for credit) A. Yes can make $30,000 B. Yes can make $90,000 C. No will lose $30,000 D. No will lose $90,000 The lowest contribution margin per scarce resource is the most profitable. A. True B. False A cost that will not be affected by later decisions is termed an opportunity cost. A. True B. False Eliminating a product or segment may have the long-term effect of reducing fixed costs. A. True B. False Differential revenue is the amount of income that would result from the best available alternative proposed use of cash. A. True B. False In deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses. A. True B. False
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