A Company Is Within Plant Capacity

question 90

Multiple Choice

A company is within plant capacity. It is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur?

• A) Incremental costs will not be affected.
• B) Net income will increase if the special sales price per unit exceeds the unit variable costs.
• C) There are no incremental revenues.
• D) Both fixed and variable costs will increase.