SWIN Ltd manufacturers a number of specialised electronic components, including ALPHA Sensors. SWIN Ltd has the capacity to produce 10,000 units of ALPHA per year. Currently, it is operating at 80 per cent capacity. The selling price for ALPHA is $100 per unit. The variable cost per unit is $37. Fixed cost allocated to producing Alpha is $100,000 per year. SWIN Ltd receives a special order for 3,000 units of ALPHA. The opportunity cost associated with taking this special order is?
SWIN Ltd manufacturers a number of specialised electronic components, including ALPHA Sensors. SWIN Ltd has the capacity to produce 10,000 units of ALPHA per year. Currently, it is operating at 80 per cent capacity. The selling price for ALPHA is $100 per unit. The variable cost per unit is $37. Fixed cost allocated to producing Alpha is $100,000 per year. SWIN Ltd receives a special order for 3,000 units of ALPHA. 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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SWIN Ltd manufacturers a number of specialised electronic components, including ALPHA Sensors. SWIN Ltd has the capacity to produce 10,000 units of ALPHA per year. Currently, it is operating at 80 per cent capacity. The selling price for ALPHA is $100 per unit. The variable cost per unit is $37. Fixed cost allocated to producing Alpha is $100,000 per year. SWIN Ltd receives a special order for 3,000 units of ALPHA. The opportunity cost associated with taking this special order is?
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