Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. What is the relevant cost of genatope? Note: Enter your answer in pesos

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Logistics Audit Methods Organization And Practice

Authors: Piotr Buła, Bartosz Niedzielski

1st Edition

1032461268, 978-1032461267

More Books

Students also viewed these Accounting questions

Question

Employ effective vocal cues Employ effective visual cues

Answered: 1 week ago