Kragle Ltd Manufacturers a Number of Specialised Electronic Components, Including

question 59

Multiple Choice

Kragle Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Kragle Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 80 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $30. Fixed cost allocated to producing X1000 is $200 000 per year. Kragle Ltd receives a special order for 2000 units of X1000. The opportunity cost associated with taking this special order is:

• A) $0.
• B) $60 000.
• C) $140 000.
• D) $200 000.

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Definitions:

Herpes

A viral infection caused by herpes simplex virus types 1 (HSV-1) and 2 (HSV-2), which can cause oral and genital lesions.

Presbycusis

Age-related hearing loss, typically affecting the ability to hear higher frequencies.

Incus

One of the three small bones in the middle ear, known as an auditory ossicle, which helps to transmit sound vibrations to the inner ear.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus, another middle ear bone.