15) Macon Corporation has no excess capacity. If the firm desires to implement the gener transfer-pricing rule, opportunity cost would be equal to A) the direct expenses incurred in producing the goods B) the summation of variable cost plus fixed cost. C) the contribution margin forgone from the lost external sale D) zero. E) the total difference in the cost of production between two divisions

15) Macon Corporation has no excess capacity. If the firm desires to implement the gener transfer-pricing rule, opportunity cost would be equal to A) the direct expenses incurred in producing the goods B) the summation of variable cost plus fixed cost. C) the contribution margin forgone from the lost external sale D) zero. E) the total difference in the cost of production between two divisions

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1E

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