The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units.
What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division?
Entry field with correct answer
a) $4
b) $0
c) $10
d) $25
Ans: b) $0
Business