Question
A company's unit costs based on100000units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $163. A special order
A company's unit costs based on100000units are:
Variable costs $75
Fixed costs 30
The normal unit sales price per unit is $163. A special order from a foreign company has been received for5000units at $135a unit. In order to fulfill the order,3600units of regular sales would have to be foregone.
The opportunity cost associated with this order is
$316800.
$586800.
$486000.
$270000.
why is 316800 the right answer?
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Financial And Managerial Accounting
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler
16th Edition
0357714040, 9780357714041
