Nestle Company Paid $130,000 for a Machine Used to Mill

question 139

Multiple Choice

Nestle Company paid $130,000 for a machine used to mill oats.The annual contribution margin from oat sales is $60,000.The machine could be sold for $80,000.The opportunity cost of producing wheat flour is _____.

• A)$130,000
• B)$80,000
• C)$60,000
• D)$20,000

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Definitions:

Mission

A specific task, goal, or duty that is assigned to or undertaken by an individual or organization, often with a broader purpose or objective in mind.

Defensive

A posture or attitude taken to protect oneself from criticism, harm, or other adverse effects.

Social Oppression

A system of advantage and disadvantage based on social categories, where one group is oppressed while another is privileged.

Trivial Acts

Actions or deeds considered to be of little importance or significance.