Altec Company has relevant costs of $40 per unit to manufacture 1,000 units of Part A. A current supplier offers to make Part A for $35 per unit. If capacity is constrained, the opportunity cost of buying Part A from the supplier is:
A)0
B)$5,000
C)$35,000
D)indeterminable

Question

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The Answer of Altec Company has relevant costs of $40 per unit to manufacture 1,000 units of Part A. A current supplier offers to make Part A for $35 per unit. If capacity is constrained, the opportunity cost of buying Part A from the supplier is:
A)0
B)$5,000
C)$35,000
D)indeterminable

Altec Company Has Relevant Costs of $40 Per Unit to Manufacture