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Let's check the concept of opportunity costs at capacity or less than capacity....

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Accounting

Let's check the concept of opportunity costs at capacity or less than capacity. If a company is selling a unit at $20, the variable cost is $9, and the allocated fixed costs are $4, can a you explain what the opportunity cost is in reference to this company if it is at full capacity? Can you also explain what the lowest price a company would sell a unit at in a special order if the company is below capacity? Why? thanks

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