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What is Ratzlaff Companys opportunity cost

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Question - Current monthly sales are now 20,000 units (FULL CAPACITY). Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would be adversely affected by the one-time-only special order (resulting in OPPORTUNITY COST) although variable selling costs ($.60/unit) would not be incurred on the special order. Variable selling costs ($.60/unit) are only incurred on sales to regular customers.

What is Ratzlaff Company's opportunity cost if the special order is accepted?

a. $1,450

b. $1,650

c. $1,850

d. $2,050

Reference no: EM132528939

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