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Veruca Co. manufactures part S-1. It has received an offer from an outside supplier to...

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Accounting

Veruca Co. manufactures part S-1. It has received an offer from an outside supplier to purchase S-1 for $15 per unit. If Veruca Co. accepts the supplier's offer, it can rent out the facilities used to manufacture S-1 for $50,000 per year. If Veruca Co. chooses to manufacture S-1, it will lose out on $50,000 in rental income. The foregone rental income is an example of what type of cost?

Group of answer choices

a.Opportunity cost

b. Fixed manufacturing cost

c. Sunk cost

d. Variable manufacturing cost

Answer & Explanation Solved by verified expert
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