Acompany is within plant capacity. it is contemplating whether a special order should be accepted. the order will not impact regular sales. if the company accepts the special order, what will occur? incremental costs will not be affected. net income will increase if the special sales price per unit exceeds the unit variable costs. there are no incremental revenues. both fixed and variable costs will increase.

Zara, a global retail and apparel manufacturer based in spain that has successfully implemented this idea by having a continuous flow of new products that are typically limited in supply. zara has created a system that draws its clientèle into its stores, on average, 17 times per year as compared to 4 times per year for most stores. how is zara using it to gain competitive advantage? what specific technologies are used by zara to maintain this advantage over its competition?