The Selling Division's Unit Sales Price Is $25 and Its

question 65

Multiple Choice

The Selling Division's unit sales price is $25 and its unit variable cost is $15.Its capacity is 10,000 units.Fixed costs per unit are $6.Current outside sales are 8,000 units.
-What is the Selling Division's opportunity cost per unit from selling 3,000 units to the Purchasing Division?

• A)$10
• B)$25
• C)$4
• D)$0

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Definitions:

Old Northwest

A historical term referring to the territorial area northwest of the Ohio River, significant for its early settlement and development of the United States.

War of 1812

A military conflict fought between the United States of America and the United Kingdom, Canadian colonies, and their Native American allies from 1812 to 1815, primarily over issues of trade restrictions and territorial expansion.

White Settlers

Refers to individuals of European descent, particularly those who colonized or settled in lands outside Europe, often impacting indigenous populations.

Handsome Lake

A Native American religious leader of the Seneca people who advocated for moral reform, blending traditional beliefs with elements of Christianity.