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pecial order: manufacturer obal Chemical Company (GCC) recently received an order for a product that it does produce. Since the company has spare production capacity,

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pecial order: manufacturer obal Chemical Company (GCC) recently received an order for a product that it does produce. Since the company has spare production capacity, management are consideri E19.24 nor LO19.4 t costs ofp ccepting 19.5order. In analysing the decision, the assistant accountant is compiling the rele order Production of the special order would require 8000 kilograms of theolite. Global Chrd Company does not use theolite for its regular product, but the firm has 8000 kilograme on hand from the days when it used theolite regularly. The theolite could be sold to a chem chemicl wholesaler for $14 500. The carrying amount of the theolite is $2 per kilogram, Global Che Company could buy theolite for $2.40 per kilogram. Chema al Required: eWhat is the relevant cost of theolite for the purpose of analysing the special order decition? 2 Discuss each item of numerical data given in the exercise with regard to its relevance in makn decision. igt

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