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E19.25 Special order: manufacturer LO 19.4 Refer to the data given in Exercise E19.24. International Chemical Company's special order also requires 19.5 1000 kilograms of
E19.25 Special order: manufacturer LO 19.4 Refer to the data given in Exercise E19.24. International Chemical Company's special order also requires 19.5 1000 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8 000 kilograms at a carrying amount of $16.20 per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of $17.40 per kilogram. Without the special order, the purchasing manager predicts that the price will be $16.60 when normal restocking takes place. The order size for genatope is 5000 kilograms. Required: 1. What is the relevant cost of genatope? 2. Discuss each item of numerical data detailed in this exercise in terms of its relevance to the decision. E19.25 Special order: manufacturer LO 19.4 Refer to the data given in Exercise E19.24. International Chemical Company's special order also requires 19.5 1000 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8 000 kilograms at a carrying amount of $16.20 per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of $17.40 per kilogram. Without the special order, the purchasing manager predicts that the price will be $16.60 when normal restocking takes place. The order size for genatope is 5000 kilograms. Required: 1. What is the relevant cost of genatope? 2. Discuss each item of numerical data detailed in this exercise in terms of its relevance to the decision
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