i] \"Opportunity cost" is a very important cost concept in business decision making. Explain briey the meaning of Opportunity cost. 1H'lthy Opportunity | cost is considered as very important in business decision making? What are the main criteria that need to take in to account in determining whether a cost is relevant for business decision making? [5 marks} ii} A summary of a manufacturing company's budgeted prot statement for its next nancial year, when it expects to be operating at 00% of capacity, is given below. E Seles 3,000 units at T5 225,000 Less: Direct material 24,000 Direct labour 30,000 Production overhead - fixed 50,000 - variable 15.0110 125.000 Gross Profit 100,000 Less: admin, selling it; distribution costs - fixed 30,000 - variable 213m 51,000 Net profit 43,000 Company has analyzed two more alternatives; Alternative 1 If the selling price per unit were reduced to 05, the increased demand would utilize 00% of the companys capacity without any additional fixed cost. Further, it has been estimated that due to the increased volume, direct material cost will be reduced to 0 per unit