Author Question: Altec Services Corporation has relevant costs of $46 per unit to manufacture 1,050 units of Part A. ... (Read 119 times)

Brittanyd9008 · **on:** Mar 6, 2021

Question 1

A supplier offers to make Part A for $30. Altec Services Corporation has relevant costs of $47 a unit to manufacture 1,020 units of Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is ________.
◦ $0
◦ $47,940
◦ $30,600
◦ $78,540

Question 2

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 ________.
◦ $0
◦ $13,650
◦ $43,650
◦ $30,000

Ahnyah · **Reply #1 on:** Mar 6, 2021

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