Question

The minimum selling price that should be acceptable in a special order situation is equal to total Select one: a. production cost plus a normal profit margin b. variable production cost c. variable costs and avoidable fixed costs d. production cost

Answer 1

Usually, the minimum selling price that should be acceptable in a special order situation is equal to total variable costs and avoidable fixed costs

What is a special order?

This is a situation that involves a one-time customer order on a large quantity and a low price.

Hence, the minimum selling price to be accepted must equal to total variable costs and avoidable fixed costs for this orders.

Therefore, the Option C is correct.

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