Yome Ltd manufacturers a number of specialised electronic components, including the advanced Pro Vmax. Yome Ltd has the capacity to produce 10,000 units of Pro Vmax per year. Currently it is operating at 90 per cent capacity. The selling price for Pro Vmax is $120 per unit. The variable cost per unit is $40. Fixed cost allocated to producing Pro Vmax is $300,000 per year. Yome Ltd receives a special order for 2,000 units of Pro Vmax. The opportunity cost associated with taking this special order is:

A.

$0

B.

$180,000

C.

$90,000

D.

$80,000

K & C plans to sell 2,500 units. The selling price per unit is $24. There are 150 units in beginning inventory and the company would like to have 350 units in ending inventory. How many units should be produced for the coming period?

A.

2500

B.

2700

C.

2650

D.

2300