Jensen Company has relevant costs of $80 per unit to manufacture Part A.A current supplier offers to make Part A for $70 per unit.If capacity is constrained,the opportunity cost of buying Part A from the supplier is:
A)$70 000.
B)0.
C)$10 000.
D)indeterminable.

Question

Quizplus · Accepted Answer

The Answer of Jensen Company has relevant costs of $80 per unit to manufacture Part A.A current supplier offers to make Part A for $70 per unit.If capacity is constrained,the opportunity cost of buying Part A from the supplier is:
A)$70 000.
B)0.
C)$10 000.
D)indeterminable.

Jensen Company Has Relevant Costs of $80 Per Unit to Manufacture