Question $8(1$ point$)$

Balance Shoe Company produces a single product $-$ an athletic shoe pair. The shoe pair sells for $$180$ and has total variable costs of $$80.$ The shoe pair requires $20$ minutes of machine time, Production of shoes is constrained by machine capacity. All of the available machine time of $2,000$ hours is being used to meet current demand.

Balance Shoe Company has been approached by PriceCo with a request to supply $2,000$ pairs of a new shoe. PriceCo has offered to pay $$170$ for each new shoe pair. The new shoe pair has an estimated variable cost of $$70$ and each new shoe pair would require $30$ minutes of machine time.

What is the total opportunity cost of accepting the full order from PriceCo?

$$540,000$

$$300,000$

$$333,333$

$$200,000$