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Use the following to answer questions 3-4: The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is
Use the following to answer questions 3-4: The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units.
3. What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division? A) $10 B) $25 C) $4 D) $0
4. What is the Selling Division's opportunity cost per unit from selling 3,000 units to the Purchasing Division? A) $10 B) $25 C) $4 D) $0
Answers are 3. D) and 4. A). Please show steps
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