A company cannot increase profits if it accepts a special order at a price below its incremental variable cost.

Name: A company cannot increase profits if it accepts a special order at a price below its incremental variable cost.
Brand: Quizplus
Rating: 5.0 (41 reviews)

Question

Quizplus · Accepted Answer

If the price of the special order is below the incremental variable cost, the company will incur a loss on each unit sold. This will reduce the company's overall profits.

A Company Cannot Increase Profits If It Accepts a Special