Hawthorn Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Hawthorn Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 80 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $30. Fixed cost allocated to producing X1000 is $100 000 per year. Hawthorn Ltd receives a special order for 3000 units of X1000. The opportunity cost associated with taking this special order is:
Hawthorn Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Hawthorn Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 80 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $30. Fixed cost allocated to producing X1000 is $100 000 per year. Hawthorn Ltd receives a special order for 3000 units of X1000. The opportunity cost associated with taking this special order is:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...
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Hawthorn Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Hawthorn Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 80 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $30. Fixed cost allocated to producing X1000 is $100 000 per year. Hawthorn Ltd receives a special order for 3000 units of X1000. The opportunity cost associated with taking this special order is:
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