In a special-order scenario, if a company would need to expand capacity in order to fulfill a special order, then selection of whether to accept the special order should be based on
A) contribution margins of the two options since the fixed costs will not change.
B) operating incomes since fixed costs will change.
C) the amount of additional fixed costs to be incurred for the special order.
D) the variable costs of the special order incurred since only variable costs change.

Question

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The Answer of In a special-order scenario, if a company would need to expand capacity in order to fulfill a special order, then selection of whether to accept the special order should be based on
A) contribution margins of the two options since the fixed costs will not change.
B) operating incomes since fixed costs will change.
C) the amount of additional fixed costs to be incurred for the special order.
D) the variable costs of the special order incurred since only variable costs change.

In a Special-Order Scenario, If a Company Would Need to Expand