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ACCEPTING SPECIAL ORDERS

6 五月, 2015 - 17:10

A company may accept additional business at a special price. Incremental or differential analysis is used to determine the differential revenue and costs. Companies not operating at full capacity usually can benefit from additional business, if fixed costs remain the same and the fixed cost per unit produced decreases. However, a company operating at full capacity is likely to see both fixed costs and variable costs rise.