Use the Information Below to Answer the Following Question(s)

question 55

Multiple Choice

Use the information below to answer the following question(s) .Crush Company makes internal transfers at 180% of full cost.The Soda Refining division purchases 30,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $30 per container via an external shipper.In order to reduce costs the company located an independent producer in Manitoba who is willing to sell 30,000 containers at $20 each, delivered to Crush Company's shipping division in Manitoba.The company's Shipping Division in Manitoba can ship the 30,000 containers at a variable cost of $2.50 per container and a full cost, based on practical capacity, of $4.00 per container.When the company's Manitoba shipping division ships for external customers is charges $6.00 per container.
-What is the opportunity cost for Crush Company from continuing to purchase the water from the local supplier if the company's Manitoba shipping division has sufficient idle capacity?

• A)$600,000
• B)$60,000
• C)$105,000
• D)$180,000
• E)$0

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Definitions:

Dissociative Disorder

A mental health condition marked by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Bulimia Nervosa

An eating disorder marked by episodes of binge eating followed by inappropriate methods of weight control, such as vomiting.

Schizotypal Personality Disorder

A mental health condition characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, unusual perceptions, and odd behaviors.

Auditory Hallucinations

Experiencing the perception of sound, such as voices, music, or noises, in the absence of an external auditory stimulus.