Question: Premier Co . is currently producing 1 0 , 0 0 0 park benches annually. A supplier has offered to produce the bench for $

Premier Co. is currently producing 10,000 park benches annually. A supplier has offered to produce the bench for $500 per bench. Premier Co. incurs unit-level costs of $490 per unit. Premier also spends $50,000 on product design each year and incurs $100,000 of facility-level costs. The avoidable production cost for Premier Co. per bench is _blank_.
Multiple choice question.
$490
$495
$505
$500

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