Multiple Choice
Max Company uses 10,000 units of Part A in producing its products.A supplier offers to make Part A for $7.Max Company has relevant costs of $8 a unit to manufacture Part A.If there is excess capacity, the opportunity cost of buying Part A from the supplier is
A) $0.
B) $10,000.
C) $70,000.
D) $80,000.
Correct Answer:
Verified
Correct Answer:
Verified
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