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Romashka [77]
3 years ago
5

A company's unit costs based on 100,000 units are:

Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer: b. $270,000

Explanation:

The opportunity cost is the contribution margin of sales that would be foregone if the special order was fulfilled.

Contribution margin = Selling price - Variable cost

= 165 - 75

= $90

Total contribution cost for the 3,000 units that will be foregone:

= 90 * 3,000

= $270,000

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