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Vicade Has 1,000 Commercial Video Game Machines in Inventory Produced

question 129

Multiple Choice

Vicade has 1,000 commercial video game machines in inventory produced at a cost of $400 each (60% variable and 40% fixed) . The machines were to have been sold for $1,000 each. However, the machines currently contain a minor malfunction reducing their selling price to $150 each. The company could correct the malfunction at a variable cost of $250 each and then sell the machines for $550 each.
For purposes of determining whether the machines should be reworked, what is the opportunity cost per unit?

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Definitions:

Connected

Being in a state of having a relationship or link with something or someone.

Effective

Producing the intended or desired result with efficiency.

Biased

Showing an inclination or prejudice for or against one person or group, especially in a way considered to be unfair.

Prejudiced Information

Information that is biased, often based on stereotypes or misconceptions, which can affect judgment and decision-making.

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