Question: A companys unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A
A companys 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.
8. The opportunity cost associated with this order is a. $225,000. b. $495,000. c. $270,000. d. $405,000.
9. The incremental profit (loss) from accepting the order would be a. $30,000. b. $(150,000). c. $180,000. d. $(90,000).
Please solve both 8 and 9 questions
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