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Use the following information for questions 17 and 18. A company's unit costs based on 100,000 units are: Variable costs Fixed costs 30 $75 The
Use the following information for questions 17 and 18. A company's unit costs based on 100,000 units are: Variable costs Fixed costs 30 $75 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone. 17. The opportunity cost associated with this order is a. $225,000. b. $495,000 c. $270,000 d. $405,000 18. The incremental profit (loss) from accepting the order would be a. $30,000. b. S(150,000). c. $180,000. d. $(90,000)
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