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Cinrich produces a mint syrup used by gum and candy companies. Recently, the company has had excess capacity due to a new competitor entering its

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Cinrich produces a mint syrup used by gum and candy companies. Recently, the company has had excess capacity due to a new competitor entering its market. Cinrich is currently bidding on a potential order from Quality Candy for 5,500 cases of syrup. The estimated cost of each case is $25.90, as follows: The predetermined over head rate is $2.00 per direct labor dollar. This was estimated by dividing estimated annuat overhead ($1,188,000) by estimated annual direct labor ($660.000). The $1.188.000 of overhead is compoyed of $297.000 of variable sosts and $891,000 of fixed costs. The largest fixed cost relates to depreciation of plant and equipment With respect to overhead, what is the opportunity cost of producing s case of symp? (Round answer to 2 decimal ploces, es. 15.25 ) eTextbook and Media

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