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Part B: Maria Plumbing Co. is handling a contract that will require the use of 550 units of Component Alpha. This component is not normally
Part B: Maria Plumbing Co. is handling a contract that will require the use of 550 units of Component Alpha. This component is not normally used by the business, however, 250 units are currently held as inventories following a canceled order. These units cost the business $115 each. The business has no other use for these units and so it is considering selling them for $71 each. The current replacement cost of the units is $95 each. What is the total relevant cost of Component Alpha?
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