A companys unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal

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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. $225,000.

b. $495,000.

c. $270,000.

d. $405,000

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Posted Date: Jan 12, 2021 06:03 AM

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A companys unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal

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Financial and Managerial Accounting

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