37.Current monthly sales are now 20,000 units (FULL CAPACITY).Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each.Current sales would be adversely affected by the one-time-only special order (resulting in OPPORTUNITY COST) although variable selling costs ($.60/unit) would not be incurred on the special order. Variable selling costs ($.60/unit) are only incurred on sales to regular customers.

What is Ratzlaff Company's opportunity cost if the special order is accepted?

a.$1,450c.$1,850

b.$1,650d.$2,050