Lake City Plastics currently produces plastic plates and silverware.The company is considering expanding its product offerings to include plastic serving trays.All of the following are relevant costs to this project with the exception of:
A) the cost of additional utilities required to operate the serving tray production operation.
B) any change in the expected sales of plates and silverware gained from offering trays also.
C) a percentage of the current operating overhead.
D) the additional plastic raw materials that would be required.
E) the cost to acquire the forms needed to mold the trays.
Correct Answer:
Verified
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