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The opportunity cost of an alternate course of action that is
relevant to a make-or-buy decision is
Question 9
Martin Company incurred the following costs for 70,000 units:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for
3,000 units. There is sufficient capacity to fill the order without
jeopardizing regular sales. Filling the order will require
spending an additional $6,300 for shipping.
If Martin wants to earn $6,000 on the order, what should the
unit price be?
Question 10
Incremental analysis is most useful
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ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-
12, P11-2A)
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ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12,
P11-2A)
Chapter 11: Standard Costs and Balanced Scorecard
E11- 3