A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone. The opportunity cost associated with this order is $184000. $334000. $150000. $270000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone. The opportunity cost associated with this order is $184000. $334000. $150000. $270000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company’s unit costs based on 100000 units are:
Variable costs | $75 |
Fixed costs | 30 |
The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone.
The opportunity cost associated with this order is
$184000.
$334000.
$150000.
$270000.
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