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.

What is the opportunity cost associated with this order? (show your calculation)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!