What is the opportunity cost associated with this order


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

  • variable costs $25
  • fixed costs $10

The normal unit sales price per unit is $55. A special order from a foreign company has been received for 5,000 units at $45 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be forgone.What is the opportunity cost associated with this order?

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Accounting Basics: What is the opportunity cost associated with this order
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