question archive Altec Company has relevant costs of $40 per unit to manufacture 1,000 units of Part A

Altec Company has relevant costs of $40 per unit to manufacture 1,000 units of Part A

Subject:AccountingPrice:2.86 Bought9

Altec Company 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. If capacity is constrained, the opportunity cost of buying Part A from the supplier is:

 

Option 1

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2.86 USD

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Option 2

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