Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52,000 for 12,000 units. If the 12,000 units of Product V72 are sold as is without further processing, the company: Multiple Choice will incur an opportunity cost of $8,000. will incur an incremental profit of $5 per unit. will incur an incremental profit of $8,000. will incur an incremental loss of $5 per unit.
Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52,000 for 12,000 units. If the 12,000 units of Product V72 are sold as is without further processing, the company: Multiple Choice will incur an opportunity cost of $8,000. will incur an incremental profit of $5 per unit. will incur an incremental profit of $8,000. will incur an incremental loss of $5 per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hello, help please
Transcribed Image Text:Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52,000 for 12,000 units. If
the 12,000 units of Product V72 are sold as is without further processing, the company:
Multiple Choice
will incur an opportunity cost of $8,000.
will incur an incremental profit of $5 per unit.
will incur an incremental profit of $8,000.
will incur an incremental loss of $5 per unit.
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