Managerial Accounting - Opportunity Cost------- A company's unit cost based on 100,000 units

*****PLEASE, PLEASE, PLEASE show me your work and how you arrived at your answer. Thanks so much**********

A company's unit costs based on 100,000 units are:

Variable costs

$75

Fixed costs

30

The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.

Reference: Ref 7-1

The opportunity cost associated with this order is:

Select one:

a. $225,000.

b. $495,000.

c. $270,000.

d. $405,000.