Suppose Berry Nectars has a machine for which it paid $190,000 several years ago and...
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Suppose Berry Nectars has a machine for which it paid $190,000 several years ago and is currently not being used. It can use the machine to produce 12 oz. bottles of its juice cocktails or 12 oz. bottles of its 100% juices. The contribution margin from the additional sales of 100% juice would be $65,000. A third alternative is selling the machine for cash of $40,000.
Requirement
What is the opportunity cost of the machine when we analyze the alternative to produce 12 oz. bottles of juice cocktails?
The opportunity cost of the machine when analyzing the alternative to produce 12 oz. bottles of juice cocktails is ............?
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