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7 Max Company uses 20,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has
7
Max Company uses 20,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is
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$140,000.
$160,000.
$0.
$20,000.
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