Question: Suppose Organic Nectars has a machine for which it paid $ 2 4 0 , 0 0 0 several years ago and is currently not
Suppose Organic Nectars has a machine for which it paid $ several years ago and is currently not being used
It can use the machine to produce oz bottles of its juice cocktails or oz bottles of its juices The
contribution margin from the additional sales of juice would be $ A third alternative is selling the machine
for cash of $
Requirement
What is the opportunity cost of the machine when we analyze the alternative to produce oz bottles of
juice cocktails?
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