Alpha Company's Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Unit fixed cost are $6. Current outside sales are 8,000 units. What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division? ⚫ $10 ⚫ $4⚫ $25.50
Alpha Company's Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Unit fixed cost are $6. Current outside sales are 8,000 units. What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division? ⚫ $10 ⚫ $4⚫ $25.50
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Transcribed Image Text:Alpha Company's Selling Division's unit sales price is $25 and its unit variable cost
is $15. Its capacity is 10,000 units. Unit fixed cost are $6. Current outside sales
are 8,000 units. What is the Selling Division's opportunity cost per unit from selling
2,000 units to the Purchasing Division? ⚫ $10 ⚫ $4⚫ $25.50
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