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What opportunity cost associated with taking special order

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Question - Hawthorn Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Hawthorn 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 $100 000 per year. Hawthorn Ltd receives a special order for 3000 units of X1000. What the opportunity cost associated with taking this special order?

Reference no: EM133186022

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