Given the following information, what is the total cost of unused capacity? Cost of material supplied is $3,200; Cost of material used is $3,000; Cost of material used per cake is $3; Cost of material supplied per cake is $3.20.
A) $0.20.
B) $200.
C) $2,000.
D) $1,000.
E) There is no unused capacity.
Correct Answer:
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