Multiple Choice
A supplier offers to make Part A for $35. Altec Company has relevant costs of $40 a unit to manufacture 1,000 units of Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is:
A) 0
B) $40,000
C) $35,000
D) indeterminable
Correct Answer:
Verified
Correct Answer:
Verified
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