Transcribed Image Text: A company can make any one of the 3 products X, Y or Z in a year. It can exercise its option only at the beginning of

Transcribed Image Text: A company can make any one of the 3 products X, Y or Z in a year. It can exercise its option
only at the beginning of each year.
Relevant information about the products for the next year is given below.
X
Y
Selling Price ( unit)
10
12
12
Variable Costs ( unit)
9
7
Market Demand (unit)
3,000
2,000
1,000
Production Capacity (unit)
2,000
3,000
900
Fixed Costs
30,000
Required
Compute the opportunity costs for each of the products.
N

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