The minimum selling price that should be acceptable in a special order situation is equal to total
A)production cost.
B)variable production cost.
C)variable costs.
D)production cost plus a normal profit margin.

Question

Quizplus · Accepted Answer

In a special order situation, the minimum selling price should cover the variable costs, as these are the costs that will be incurred with the additional production. Fixed costs are not considered since they are already covered by regular sales.

The Minimum Selling Price That Should Be Acceptable in a Special