Question

b) Explain on what will be the possible outcomes if the company reject the special order without any consideration.

Answer 1

Special orders are received by the company on the basis of their performance and the quality of product provided by them. Also special orders brings higher benefits to the company then the ordinary orders.
Special orders are given by the consumer only for a specific period of time and special orders as such orders which any company will always try to grab/receive.
The reason behind this is that special orders will increase the company's production level and lower the costs providing higher benefits.

Now the possible outcomes if the company reject special orders without any consideration is that such orders can be cancelled by the consumers. It can also be a possibility that such special orders may be given to another company.
But if once a company receives a consideration then such special orders are not likely to be cancelled.

So, receiving a consideration on special orders is must.