Amanager in your organization just received a special order at a price that is "below cost." the manager points to the document and says, "these are the kinds of orders that will get you in trouble. every sale must bear its share of the full costs of running the business. if we sell below our full cost, we'll be out of business in no time." what do you think of this remark?

So, from a short-run perspective, so long as the sale does not affect other output prices or normal sales volume, a "below cost" sale may result in a net increase in income so long as the revenues cover the differential costs.

However, in the long run all costs must be covered or management would not reinvest in the same type of assets.

If the company must continually sell below the full cost of production then it will most likely get out of that particular business when it comes time to replace those facilities.

the answer is . a novel has no sub-plot, but a novella does

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o