A company can make any one of the 3 products X, Y or Z in a year. It can exercise its option only at the beginning of each year. Relevant information about the products for the next year is given below Selling Price (/unit) Variable Costs(/unit) Market Demand (unit) Production Capacity (unit) 10 6 3,000 2,000 Fixed Costs() Required Compute the opportunity costs for each of the products. 12 9 2,000 3,000 30,000 Z 12 7 1,000 900
A company can make any one of the 3 products X, Y or Z in a year. It can exercise its option only at the beginning of each year. Relevant information about the products for the next year is given below Selling Price (/unit) Variable Costs(/unit) Market Demand (unit) Production Capacity (unit) 10 6 3,000 2,000 Fixed Costs() Required Compute the opportunity costs for each of the products. 12 9 2,000 3,000 30,000 Z 12 7 1,000 900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company can make any one of the 3 products X, Y or Z in a year. It can exercise its option
only at the beginning of each year.
Relevant information about the products for the next year is given below
Y
12
9
2,000
3,000
30,000
Selling Price (/unit)
Variable Costs(/unit)
Market Demand (unit)
Production Capacity (unit)
Fixed Costs (**)
10
6
3,000
2,000
Required
Compute the opportunity costs for each of the products.
Z
12
7
1,000
900
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