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Qdoba on State Street is deciding whether to cook or outsource the chicken for their underfilled burrito bowls. If Qdoba purchases the cooked chicken,

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Qdoba on State Street is deciding whether to cook or outsource the chicken for their underfilled burrito bowls. If Qdoba purchases the cooked chicken, they could eliminate all of the $65,000 of variable costs related to cooking the chicken themselves and $3,000 of fixed cost. Additionally, if Qdoba purchases the cooked chicken, they can use the extra capacity to generate an additional $37,100 of contribution margin by cooking more tofu, which has a higher contribution margin. What is the opportunity cost to Qdoba if they continue to cook the chicken themselves?

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