Redimix Corporation has two producing centers,(A and B)Division A has a variable cost of $12 for its products and a total fixed cost of $120,000.Division A also has idle capacity for up to 50,000 units per month.Division B would like to purchase 20,000 units of Division A's products per month,but is unable to convince Division A to transfer units to Division B at $16 per unit.Division A has consistently argued that the market price of $20 is nonnegotiable.What is A's opportunity cost of not transferring units to B?
A)$20
B)$12
C)$8
D)$4

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The Answer of Redimix Corporation has two producing centers,(A and B)Division A has a variable cost of $12 for its products and a total fixed cost of $120,000.Division A also has idle capacity for up to 50,000 units per month.Division B would like to purchase 20,000 units of Division A's products per month,but is unable to convince Division A to transfer units to Division B at $16 per unit.Division A has consistently argued that the market price of $20 is nonnegotiable.What is A's opportunity cost of not transferring units to B?
A)$20
B)$12
C)$8
D)$4

Redimix Corporation Has Two Producing Centers,(A and B)Division a Has