Question

A business may decide to accept additional business at a special price for all of the following reasons except Group of answer choices if additional sales will not conflict with regular sales. if additional sales will increase differential income. if there is an increase to sales only if fixed expenses are not increased. if there is an increase to sales even if fixed expenses are also increased.

Answer 1

Answer:

if there is an increase to sales even if fixed expenses are also increased.

Explanation:

In simple words, fixed cost refers to the expenditures, that unlike variable expenses, remain stable at a high level. Factory or office rent , labor charges are some of the prime examples of fixed expenses.

Due to fixed expenses, entities operating at higher level makes higher profit. Hence, if the fixed expenses also increase with sales then the project might not be very profitable to accept.