A Company Is Contemplating the Acceptance of a Special Order

question 127

Multiple Choice

A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer's name on the product. Which of the following is likely?

• A) Total variable costs will be irrelevant.
• B) Only variable costs will be relevant.
• C) Only fixed costs will be relevant.
• D) Both variable and fixed costs will be relevant.

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Definitions:

Hemophilia

Genetic disorder that is caused by a deficiency of a clotting factor in the blood.

Klinefelter Syndrome

A genetic condition in males resulting from an extra X chromosome (XXY), characterized by reduced fertility, testicular atrophy, and sometimes lower levels of testosterone.

XXY

A chromosomal condition where an individual has an extra Y chromosome, typically resulting in Klinefelter syndrome, characterized by physical and sometimes cognitive features.

Sex Chromosomes

Chromosomes that determine the sex of an organism, typically referred to as X and Y in many species.