Question: 1.A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A
1.A company's unit costs based on 100,000 units are:
Variable costs
$75
Fixed costs
30
The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
The opportunity cost associated with this order is
a. $495,000
b. $270,000
c. $405,000
d. $225,000
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