SWIN Ltd manufacturers a number of specialised electronic components, including ALPHA  Sensors. SWIN Ltd has the capacity to produce 10,000 units of ALPHA per year. Currently, it is operating at 80 per cent capacity. The selling price for ALPHA is $100 per unit. The variable cost per unit is $37. Fixed cost allocated to producing Alpha is $100,000 per year. SWIN Ltd receives a special order for 3,000 units of ALPHA. The opportunity cost associated with taking this special order is?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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SWIN Ltd manufacturers a number of specialised electronic components, including ALPHA  Sensors. SWIN Ltd has the capacity to produce 10,000 units of ALPHA per year. Currently, it is operating at 80 per cent capacity. The selling price for ALPHA is $100 per unit. The variable cost per unit is $37. Fixed cost allocated to producing Alpha is $100,000 per year. SWIN Ltd receives a special order for 3,000 units of ALPHA. The opportunity cost associated with taking this special order is?

 

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