Suppose we are facing making an investment in one of two projects: Project A and Project B. Information about the projects follow: Project A Project B Sales price per unit $20 $20 Variable cost per unit $12 $5 Total fixed cost $100,000 $200,000 If the expected sales volume is likely be about 14,000 units, what is the opportunity cost that Project A must improve on? I think this question is the same as asking what the profits of Project B will be at 14,000 units. It's the profit of Project B at 14,000 units that is the opportunity cost of Project A. $12.000 $10,000 O $0 MacBook Pro Suppose we are facing making an investment in one of two projects: Project A and Project B. Information about the projects follow: Project A Project B Sales price per unit $20 $20 Variable cost per unit $12 $5 Total fixed cost $100,000 $200,000 If the expected sales volume is likely to be about 15,000 units, what is the opportunity cost that Project B must improve on? O $20,000 $25,000 O $0 Suppose we are facing making an investment in one of two projects: Project A and Project B. Information about the projects follow: Project A Project B Sales price per unit $20 $20 Variable cost per unit $12 $5 Total fixed cost $100,000 $200,000 At what sales volume will Project A just cover the opportunity cost of selecting Project B? This seems like the question of where are the two profits equal. At the level of equal profits, each Project will just cover the opportunity cost of the other. 12,500 13.333 KO 14,286