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What the opportunity cost associated with the order is

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Reference no: EM132908812

A company's unit costs based on 100,000 units are:

Variable costs $75

Fixed costs 30

The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.

Problem 1: The opportunity cost associated with this order is

Select one:

a. $405,000

b. $225,000.

c. $495,000

d. $270,000

 

Reference no: EM132908812

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