Question
Hamby Corporation is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of
Hamby Corporation is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. Material W34C is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $7.60 per liter. New stocks of the material can be readily purchased for $8.35 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?
Multiple Choice
$6,481
$6,376
$6,513
$5,928
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