What is the annual opportunity cost

Reference no: EM133276775

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

Questions Cloud

Describe how the movie Rollover helped to magnify fears : Describe how the movie "Rollover" helped to magnify fears of the rise of OPEC, the vulnerability of the US (and global) economy

How does the cultural context color the way we see : MHC 652 Medaille College discusses the "cultural context" of the people in Afghanistan. How does the "cultural context" color the way we see and help clients

How are self-efficacy and self-confidence similar : PSY 839 Grand Canyon University How are self-efficacy and self-confidence similar? How are they different? Further, why is it helpful to note the distinction

Identify two problems toms leadership style : Identify two problems Toms leadership style could pose to team success and provide one example of the ethical impact on team psychology

What is the annual opportunity cost : Super Cars Ltd. is considering discontinuing model X in order to produce model SX. a sportier version. What is the annual opportunity cost

What might stanovich say is the most important : Consider the six ways of knowing described in Viney and Woody (2017). What might Stanovich say is the most important "way of knowing" and why?

Explain the four phases of a community disaster : HN 220 Purdue Global University Explain the four phases of a community disaster with an example of a natural or man-made disaster. Describe two types

How much will total revenue change : Do you think your colleague' suggestion will have the desired effect? How much will total revenue change if you follow your colleague's suggestion

What did the funeral home do to distinguished : What did the funeral home do to distinguished themselves from others and allow premium pricing?

User Account

All Pages