Solution-Would there be any opportunity costs

Would there be any opportunity costs

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Reference no: EM132960098

Question - When considering special order decisions and calculating the lowest selling price based on the information below: Kevco produces a lightweight travel mug that sells for $4.95. The full costs associated with this product are:

variable direct costs of $2.56

$140,000 in manufacturing overhead (MOH), of which $80,000 is fixed

Kevco currently produces and sells 100,000 mugs per year.

A local sports team wants to place a one-time order for 20,000 mugs with special graphics illustrating some of its key players and the team mascot.

Kevco can buy the necessary equipment and engage the service of a graphic designer at a cost of $30,000. As well, the special work would increase variable costs by $0.50 per mug.

Would there be any opportunity costs?

Reference no: EM132960098

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Would there be any opportunity costs

Reference no: EM132960098

Reference no: EM132960098

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