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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.

Correct Answer:

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