Solved

A Supplier Offers to Make Part a for $70

Question 96

Multiple Choice

A supplier offers to make Part A for $70.Jansen Company has relevant costs of $80 a unit to manufacture Part A.If there is excess capacity,the opportunity cost of buying Part A from the supplier is:


A) $10 000.
B) $70 000.
C) 0.
D) indeterminable.

Correct Answer:

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