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Intercontinentals special order requires 1,300 kilograms of genatope, a solid chemical regularly used in the companys products. The current stock of genatope is 8,700 kilograms
Intercontinentals special order requires 1,300 kilograms of genatope, a solid chemical regularly used in the companys products. The current stock of genatope is 8,700 kilograms at a book value of 8.10 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 8.70 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 8.30 p when normal restocking takes place. Any order of genatope must be in the amount of 6,500 kilograms
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