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Derek is performing incremental analysis in a make- or-buy decision for Item X. If Derek buys Item X, he can use its released productive capacity
Derek is performing incremental analysis in a make- or-buy decision for Item X. If Derek buys Item X, he can use its released productive capacity to produce Item Z. Derek will sell Item Z for $12,000 and incur production costs of $8,000. Derek's incre- mental analysis should include an opportunity cost of: a. $12,000. c. $4,000. b. $8,000. d. $0
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