If a Company Has Excess Capacity and Present Markets Will

question 86

True/False

If a company has excess capacity and present markets will not be affected it would be profitable to accept an order at a special unit price even though the price is less than the unit variable cost to manufacture the item.

---

Definitions:

High-Intensity Bulbs

High-intensity bulbs are light bulbs designed to produce a very bright light output, widely used in areas requiring significant illumination.

MTBF

Mean Time Between Failures, a reliability metric for products and systems that estimates the average time between operational failures.

System Reliability

The probability of a system or component performing its required functions under stated conditions for a specified period of time.

Parallel Components

Components that are designed to work alongside each other within a system, often to increase redundancy and reliability.