Question
A company's unit costs based on 100,000 units are: Variable costs $75. Fixed costs 30 The normal unit sales price per unit is $165. A
A company's unit costs based on 100,000 units are:
Variable costs $75.
Fixed costs 30
The normal unit sales price per unit is $165.
A special order has been received for 5,000 units at $135 per unit.
In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
The opportunity cost associated with this order is
A) $495,000 B) $270,000 C) $225,000 D) $405,000
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Financial Accounting
Authors: Carl Warren, James M. Reeve, Philip E. Fess
8th Edition
0324025394, 978-0324025392
