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A Supplier Offers to Make Part a for $35

Question 130

Multiple Choice

A supplier offers to make Part A for $35.Altec Services Corporation 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) $75,000

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