Altec Services Corporation has relevant costs of $46 per unit to manufacture 1,050 units of Part A. A current supplier offers to make Part A for $33 per unit. Alternatively, the company can rent out the capacity for $30,000. If capacity is constrained, the opportunity cost of buying Part A from the supplier is ________.
A) $0
B) $13,650
C) $43,650
D) $30,000

Question

Quizplus · Accepted Answer

Alternative rent income = $30,000

Altec Services Corporation Has Relevant Costs of $46 Per Unit