Given the following opportunity loss function, determine the loss when 500 units are sold. Opportunity loss = 2 (600 - X)for X ≤ 600, otherwise 0.
A)200
B)600
C)1,200
D)0

Question

Quizplus · Accepted Answer

The opportunity loss function is 2(600 - X) for X ≤ 600. When 500 units are sold, X = 500, which is less than 600. Therefore, the loss is 2(600 - 500) = 2(100) = 200.

Given the Following Opportunity Loss Function, Determine the Loss When