A companys unit costs based on 100000 units the normal unit


Question - A company's unit costs based on 100,000 units are:

Variable costs $75

Fixed costs 30

The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.

What is the opportunity cost associated with this order? (Show your calculation).

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Accounting Basics: A companys unit costs based on 100000 units the normal unit
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