Max Company uses 20,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is
A) $0.
B) $20,000.
C) $140,000.
D) $160,000.

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The Answer of Max Company uses 20,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is
A) $0.
B) $20,000.
C) $140,000.
D) $160,000.

Max Company Uses 20,000 Units of Part a in Producing