Houston Hobby produces several products that are sold by hobby shops across the country. Production of one product, a small model rocket, uses all available machine hours on machine |2A. The rocket, which provides a contribution margin of $1.90 per unit, requires 0.05 machine hours per unit to produce. Houston Hobby would like to use machine |2A in the production of other products. This production would take about 250 hours.

Required: Compute the opportunity cost of using 250 machine hours on machine |2A for other production. TYK-1