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Altec Services Corporation Has Relevant Costs of $40 Per Unit

Question 135

Multiple Choice

Altec Services Corporation has relevant costs of $40 per unit to manufacture 1,000 units of Part A.A current supplier offers to make Part A for $35 per unit.Alternatively,the company can rent out the capacity for $25,000.If capacity is constrained,the opportunity cost of buying Part A from the supplier is ________.


A) $0
B) $5,000
C) $35,000
D) $25,000

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