Altec Services Corporation has relevant costs of $40 per unit to manufacture 1,000 units of Part A. A current supplier offers to make Part A for $35 per unit. Alternatively, the company can rent out the capacity for $25,000
If capacity is constrained, the opportunity cost of buying Part A from the supplier is ________.
A) $0
B) $5,000
C) $35,000
D) $25,000
Answer: D
Business
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