11-45 Relevance, short-term. Hernandez Corporation is bidding on a new construction contract, here called Contract No. 1. If the bid is acc 2016. Contract No. 1 requires special cement. Hernandez has already purchased 10,000 kg of the special cerr cement is $2.40 per kg. The company could sell the cement now for $1.60 per kg after all selling costs. Herna now. If Contract No. 1 is not landed, the special cement will be available for contract No. 2. If Contract No. 1 i another grade of cement for $2.50 per kg to fulfill Contract No. 2. If it is not used in either of these 2 ways, the special cement would be of no use to the company and would b The Present of Hernandez, Julio Gomex, is puzzled about the appropriate total cost of the special cement to t intense and markups are very thin, so determing the relevant material costs when bidding on Contract No. 1 Required 1. Suppose Gomez is certain that Hernandez will land Contract No. 2; what (relevant) ost figure shou This part requires knowledge of the material on decision making under uncertainty, which was co Hernandez will land Contract No. 2. What (relevant) cost figure should Gomez use for the special c 3. Suppose Hemandez could sell the speical cement now for $2.30 per ky after all selling costs (inste that Hernandez will land Contract No. 2. What (relevant) cost figure should Gomez use for the spe