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Find the opportunity cost

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Question - Kragle Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Kragle Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 80 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $30. Fixed cost allocated to producing X1000 is $200 000 per year. Kragle Ltd receives a special order for 2000 units of X1000. Find the opportunity cost associated with taking this special order?

a. $200 000

b. $0

c. $60 000

d. $140 000

Reference no: EM132966127

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