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What is the opportunity cost of producing a Model

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Question - Binder Manufacturing produces small electric motors used by appliance manufacturers. In the past year, the company has experienced severe excess capacity due to competition from a foreign company that has entered Binder's market. The company is currently bidding on a potential order from Dacon Appliances for 6,000 Model 350 motors. The estimated cost of each motor is $45, as follows.  With respect to overhead, what is the opportunity cost of producing a Model 350 motor?

Reference no: EM132681497

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