Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make
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Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is
$0
$10,000
$80,000
$70,000
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