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Question 2 (Opportunity costs) The Wild Boar Corporation is working at full production capacity producing 13,000 units of a unique product, Rosebo. Manufacturing cost per
Question 2 (Opportunity costs) The Wild Boar Corporation is working at full production capacity producing 13,000 units of a unique product, Rosebo. Manufacturing cost per unit for Rosebo is as follows: Direct materials Direct manufacturinglabor 1 Manufacturing overhead Total manufacturing cost 7 13 Manufacturing overhead cost per unit is based on variable cost per unit of $4 and fixed costs of $39,000 (at full capacity of 13,000 units). Marketing cost per unit, all variable, is $2, and the selling price is $26. A customer, the Miami Company, has asked Wild Boar to produce 3,500 units of Orangebo, a modification of Rosebo. Orangebo would require the same manufacturing processes as Rosebo. Miami has offered to pay Wild Boar $20 for a unit of Orangebo and share half of the marketing cost per unit
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