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Question 10 Marigold Company uses 10600 units of Part A in producing its products. A supplier offers to make Part A for $6. Marigold Company

Question 10

Marigold Company uses 10600 units of Part A in producing its products. A supplier offers to make Part A for $6. Marigold Company has relevant costs of $9 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is

$31800.

$95400.

$63600.

$0.

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