The Robson Division can sell its products externally for $60 per unit. The divisions variable manufacturing costs

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The Robson Division can sell its products externally for $60 per unit. The division’s variable manufacturing costs are $26 per unit, and fixed manufacturing costs per unit are $10.

Required
Calculate the opportunity cost of transferring units internally if the division is operating at capacity.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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