Morpet Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Morpet Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 85 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $25. Fixed cost allocated to producing X1000 is $350 000 per year. Morpetn Ltd receives a special order for 2000 units of X1000.

The opportunity cost associated with taking this special order is:

Select one:

a. $37500

b. $3875000

c. $250000

d. $375000

Answer rating: 100% (QA)

Correct Option a 37500 Opportunity cost will be the contri... View the full answer