M&H Ltd.has sufficient capacity to fill an order at a special price below its usual price.The special price exceeds its variable costs.What non-financial factors should also be considered in the decision?
A)Is there the potential for additional sales to the customer in the future?
B)How existing customers will respond if they find out about the special price.
C)If there is the potential for additional sales to the customer in the future, can a higher price be charged?
D)All of the above.

Question

Quizplus · Accepted Answer

All three factors should be considered in the decision. A potential for future sales to the customer could justify accepting a lower price now, whereas negative reactions from existing customers could harm the company in the long run. The company should also consider whether a higher price can be charged for potential future sales.

M&H LtdHas Sufficient Capacity to Fill an Order at a Special