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 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 isa. $225,000.
b. $495,000.
c. $270,000.
d. $405,000
Step by Step Solution
3.39 Rating (155 Votes )
There are 3 Steps involved in it
the opportunity cost associa... View full answer
Get step-by-step solutions from verified subject matter experts
