ECONOMICS

Detailed explanation-1: -the order will likely be rejected. Since the plant is operating at full capacity, an special order (one-time) would mean additional fixed equipment and thus would mean higher expense, therefore, the answer would be d. the order will likely be rejected.

Detailed explanation-2: -If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then: only variable costs are relevant. the order will likely be accepted.

Detailed explanation-3: -Explanation: If a company has to expand capacity to accept a special order it is likely that there will be an increase in fixed costs. Fixed costs, at normal capacity, stay the same in total. If the company has to expand then it is likely that fixed costs, such as rent expense, will increase.

Detailed explanation-4: -Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity? Net income will increase if the special sales price per unit exceeds the unit variable costs.

Detailed explanation-5: -Canosta, Inc. determined that it must expand its capacity to accept a special order. Which situation is likely? Both variable and fixed costs will be relevant.