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If a special order results in a positive contribution margin of $8 when the contribution margin for ...
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If a special order results in a positive contribution margin of $8 when the contribution margin for ...
If a special order results in a positive contribution margin of $8 when the contribution margin for regular orders is $15, which of the following decisions is the most likely to be chosen?
▸ Accept the order, because $8 per unit is generated as profit.
▸ Reject the order, because $7 per unit is lost.
▸ Accept the order, but only if the customer agrees to an increase of $7 in the selling price.
▸ Accept the order, but only if the customer agrees to an increase in the selling price to match the $15 regular contribution margin.
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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More solutions for this book are
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Accept the order, because $8 per unit is generated as profit.
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Related Topics
Solved
Flexible budget contribution margin is equal to ________.
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The contribution margin income statement presents ________ above the contribution margin line.
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What is contribution margin equal to on a contribution margin income statement?
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Contribution margin ratio is equal to ________.
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The contribution margin ratio is the contribution margin divided by sales.
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Contribution margin per unit is a useful tool for calculating contribution margin and operating income.
Contribution margin per unit equals contribution margin divided by number of units sold.
Solved
Contribution margin percentage equals the unit contribution margin divided by the selling price.
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apple321
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Correct
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lolaww
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Brilliant
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gage
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Smart ... Thanks!
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