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me File Edit View History Bookmarks People Window Help x Chapter Quiz 3 Assignments. ACG 2071-CR- ezto.mheducation.com/hm.tpx connect. ACCOUNTING aestion 28 (of 401 Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 50,000 units per month is as follows Direct materials Direct labo Veriable manufectur 2.10 19 3.80 $18 Variable Foxed selling& edministrative expense The normal selling price of the product is $106.10 per unit An order has been recelved from an overseas customer special discounted price. This order would heve no effect on the company's normal sales and would not change the total amount of the companys f be $2.20 less per unit on this order than on normal sales Direct labor is a variable cost in this company en overseas customer for 3,000 units to be delivered this month at a xed costs. The variable selling and administrative expense would Suppose the company is aiready operating at capacity when the special order is received from the oversees customer. What would be the opportunity cost of each unit delivered to the oversees customer? O $1720 O $1970 O $18.40 O $4350

Explanation / Answer

Opportunity cost of each unit delivered = 106.1-47.6-9.1-2.1-3.8= 43.5 Option 4 is correct

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