Homework Answers
Answer 8 -
Incremental Profit = 2000 units * ( 55 i.e selling price - variable costs ( 50 + 2 ) ) = $ 6000
Option C is correct.
Fixed costs are irrelevant as they will continue to incur whether or not the order is accepted.
Answer 9 - Option C is correct i.e resources that have alternative uses because then only one have to forego one option in order to choose another one.
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