Gina Production Company uses a standard costing system. The following information pertains to the current year:
1 answer:
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Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by 27
<h3>How to find the opportunity cost</h3>opportunity cost of Burritos
= 400 / 300
= 1.33
The opportunity cost of Tacos
300 / 400
= 0.75
For the tacos produced we would have
opportunity cost of tacos x opportunity cost that was incurred
= 36 * 0.75
= 27
Hence we would conclude by saying that Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by 27
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