What is the annual opportunity cost

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Question - Super Cars Ltd. is considering discontinuing model X in order to produce model SX. a sportier version. Model X annual revenue is $3,000,000 with expenses of $1,500,000. Model SX is expected to make $4,000,000 of revenue each year however there will be extra design fees of $300,000 and mechanical upgrades of $1,100,000 every year. What is the annual opportunity cost?

Reference no: EM133276775

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