What is the opportunity cost of accepting the special order, Managerial Accounting

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What is the opportunity cost of accepting the special order

Problem

The Whizzers Company, operating at 100% capacity, and produces 30,000 whizzers a month. Variable manufacturing costs are $5 per unit. Fixed manufacturing costs are $40,000 per month. Whizzers are usually sold for $11 a piece. The Whizzer Company has just received a special order from Bob's Buyers to produce 1,000 whizzers for $10 a piece. What is the opportunity cost of accepting the special order?

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Managerial Accounting: What is the opportunity cost of accepting the special order

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Managerial Accounting: What is the opportunity cost of accepting the special order

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