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 will existing customers 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 of the above factors should be considered in the decision. A) It is important to consider the potential for future sales and whether offering a special price will attract and retain the customer. B) Existing customers may feel resentful if they discover that new customers are getting a better price. It is important to weigh the potential impact on customer loyalty. C) If additional sales are a possibility, it may make sense to offer a lower price now in order to generate long-term revenue.

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