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Business, 28.07.2020 21:01 zariahj044

Max Company uses 20,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is: a) $20,000.
b) $0.
c) $160,000.
d) $140,000.

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