Question

An analysis of a special order:

a. Uses the same decision-making process as long-term pricing decisions
b. Should consider if excess capacity exists
c. Should consider the impact on regular customers
d. Not mentioned

Answer 1

An analysis of a special order should consider excess capacity and the impact on regular customers.

Step-by-step explanation:

An analysis of a special order should consider if excess capacity exists and the impact on regular customers. This is because a special order is a one-time order that deviates from the regular production and pricing process. It is important to evaluate if there is enough excess capacity to fulfill the special order without disrupting regular operations. Additionally, the impact on regular customers should be considered to ensure that the special order does not negatively affect their satisfaction or loyalty.