A manuacturer operating at 95% of capacity has been offered a new order at $7.25 per unit requiring 15% of capacity. No other use of the 5% current idle capacity can be found. However, if the order were accepted, the subcontracting for the required 10% additional capacity would cost $7.50 per unit. The variable cost of production for the manufacturer on a per unit basis follows: Materials Labor ..... Variable overhead $3.50 1.50 1.50 $6.50 The profit from current business is expected to be $100,000. In applying the contribu tion marxn approach to evaluating whether to accept the new order, assuming subcon. tracting, the following values would be computed for: OPPOURTUNITY COST OF IDLE CAPACITY AVG VC PER UNIT O a zero 7.17 b zero 6.83 C. 5000 7.17 d. 5000 : 6.83