identify all relevant costs or revenue that are applicable to the decisions stated below:

Reject a special order. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Contribution margin of product.

Sales revenue at split-off point.

Interference with other production.

Contribution margin per unit of limited resource.

Selling price of supplier.

Question

14-02-2020
Business

contestada

identify all relevant costs or revenue that are applicable to the decisions stated below:

Reject a special order. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Contribution margin of product.

Sales revenue at split-off point.

Interference with other production.

Contribution margin per unit of limited resource.

Selling price of supplier.

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TomShelby TomShelby · Answer 1 · 2020-02-17T04:38:28+01:00

Answer:

Contribution margin of product.

Selling price of supplier.

Interference with other production.

Explanation:

The selling price offered less the contribution margin will determinate if the order generates a positive contribution for itself

If that number is negative the order should be rejected. if positive then, the analysis continues:

Interference with other production, if the company has to renounc e to selling in another marker for this order then; the differenctial revenue should be considered as it's an opportunity cost.