M&H LtdHas Sufficient Capacity to Fill an Order at a Special

question 26

Multiple Choice

M&H Ltd.has sufficient capacity to fill an order at a special price below its usual price.The special price exceeds its variable costs.What non-financial factors should also be considered in the decision?

• A)Is there the potential for additional sales to the customer in the future?
• B)How existing customers will respond if they find out about the special price.
• C)If there is the potential for additional sales to the customer in the future, can a higher price be charged?
• D)All of the above.

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Definitions:

Associative Network

A theory that suggests human memory is organized as a network of connected ideas, such that recalling one concept triggers the recall of associated concepts.

Linked Together

Connected or associated with each other in a sequence or relationship.

Stored in Memory

The process of retaining information over time for the purpose of influencing future action or recall.

Sharpen

To improve or enhance the quality, precision, or effectiveness of something.