Park City Pools is examining if they should also manufacture hot tubs. They collect information and determine that if they do manufacture hot tubs, they will make an additional $100,000 in profit. Park City could use the money they would invest in manufacturing in some other line of business, but the new product line will prevent the company from expanding its service contract with the YMCA. What is the type of cost they would incur, in order to manufacture hot tubs instead of something else? Explain.

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The type of cost that Park City Pools would incur to manufacture hot tubs instead of expanding in an... View the full answer