Otool Inc. Is Considering Using Stocks Of An Old Raw Material In A Special Project. The Special Project Would Require All 160 Kilograms Of The Raw Material That Are In Stock And That Originally Cost The Company $1,936 In Total. If The Company Were To Buy New Supplies Of This Raw Material On The Open Market, It Would Cost $7.65 Per Kilogram. However, The

Otool Inc. is considering using stocks of an old raw material in a special project. The special project would require all 160 kilograms of the raw material that are in stock and that originally cost the company $1,936 In total. If the company were to buy new supplies of this raw material on the open market, it would cost $7.65 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $6.95 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $83 for all 160 kilograms. What is the relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project? Multiple Choice $1,029 $1,224 $1,216 $1,112