Jensen Company Has Relevant Costs of $80 Per Unit to Manufacture

question 36

Multiple Choice

Jensen Company has relevant costs of $80 per unit to manufacture Part A.A current supplier offers to make Part A for $70 per unit.If capacity is constrained,the opportunity cost of buying Part A from the supplier is:

• A)$70 000.
• B)0.
• C)$10 000.
• D)indeterminable.