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Determine the relevant costs to make the part

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Reference no: EM133007192

Question - Jordan Pickford Ltd makes 20,000 units of a part. The cost to make the part is $15 in variable costs. If Jordan Pickford Ltd buys the part from an external supplier, the cost would be $18 per unit and the released capacity could be used differently to generate profits of $30,000. Determine the relevant costs to make the part, including any opportunity costs.

a. $330,000

b. $390,000

c. $300,000

d. $360,000

Reference no: EM133007192

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