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(CMA) What is the opportunity cost of making a component part in a factory given no altemative use of the capacity? Food Labour $200,000
(CMA) What is the opportunity cost of making a component part in a factory given no altemative use of the capacity? Food Labour $200,000 150,000 Overhead 220,000 Total $575,000 The overhead is 40% fixed. Of the fixed overhead, $50,000 is the salary of the cafeteria supervisor. The remainder of the fixed overhead has been allocated from total company overhead. Assuming the cafeteria supervisor will remain and that Hillary will continue to pay her salary, the maximum cost Hillary is willing to pay an outside fim to replace the cafeteria services is: a. $575,000 b. $350,000 c. $438,000 d. $482,000
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