If a special order increases total revenue and reduces average cost, which response is most consistent with typical decision-making guidance?

If a special order increases total revenue and reduces average cost, which response is most consistent with typical decision-making guidance?

• A. The order should always be accepted if it yields incremental profit.
• B. Marketing and management will want to accept the order.
• C. The company should ignore the effect on existing customers.
• D. The firm should immediately expand capacity

Answer: (B)