If a factory is not operating at full capacity, and does not have the potential business to use up the remainder of its capacity, which cost should be ignored in a decision to produce additional units of product?
variable selling expenses
fixed factory overhead
contribution margin of additional units
Why?© BrainMass Inc. brainmass.com March 4, 2021, 8:12 pm ad1c9bdddf
This posting provides a solution to a question regarding costs for operating a factory.