Altec Services Corporation Has Relevant Costs of $46 Per Unit

question 141

Multiple Choice

Altec Services Corporation has relevant costs of $46 per unit to manufacture 1,050 units of Part A. A current supplier offers to make Part A for $33 per unit. Alternatively, the company can rent out the capacity for $30,000. If capacity is constrained, the opportunity cost of buying Part A from the supplier is ________.

• A) $0
• B) $13,650
• C) $43,650
• D) $30,000

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