The Yellow Corporation's management is evaluating a special order from a regular customer. The customer has offered to purchase 3,000 units of a Yellow Corporation product at a price that would provide a contribution margin of $2.5 per unit. Yellow's management wants to accept the offer because so doing would allow them to keep its current work force fully employed. Otherwise, Yellow will lay-off 10 workers for a week, depriving the workers of their weekly $250 wages. Accepting the offer will tie up approximately 500 square feet of a building leased at an annual cost of $30 per square foot. At the present time, Yellow Corporation has no alternative use for this portion of the facilities.
Based on just the information presented above, how much is the Yellow Corporation's opportunity costs associated with accepting this special order from the customer?

Question

The Yellow Corporation's management is evaluating a special order from a regular customer. The customer has offered to purchase 3,000 units of a Yellow Corporation product at a price that would provide a contribution margin of $2.5 per unit. Yellow's management wants to accept the offer because so doing would allow them to keep its current work force fully employed. Otherwise, Yellow will lay-off 10 workers for a week, depriving the workers of their weekly $250 wages. Accepting the offer will tie up approximately 500 square feet of a building leased at an annual cost of $30 per square foot. At the present time, Yellow Corporation has no alternative use for this portion of the facilities. 
Based on just the information presented above, how much is the Yellow Corporation's opportunity costs associated with accepting this special order from the customer?

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The Answer of The Yellow Corporation's management is evaluating a special order from a regular customer. The customer has offered to purchase 3,000 units of a Yellow Corporation product at a price that would provide a contribution margin of $2.5 per unit. Yellow's management wants to accept the offer because so doing would allow them to keep its current work force fully employed. Otherwise, Yellow will lay-off 10 workers for a week, depriving the workers of their weekly $250 wages. Accepting the offer will tie up approximately 500 square feet of a building leased at an annual cost of $30 per square foot. At the present time, Yellow Corporation has no alternative use for this portion of the facilities. 
Based on just the information presented above, how much is the Yellow Corporation's opportunity costs associated with accepting this special order from the customer?

The Yellow Corporation's Management Is Evaluating a Special Order from a Regular