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.
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.
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