Practice Question 11 options:

$54,000

$60,000

$40,000

$20,000

A company intends to quote for making a unique product which will need 15 kg of titanium and 20 kg of carbon fibre. The following information refers to these two metals. Amount in stock Original price of Current Current net Metal (Kg) stock/Kg purchase realizable price/Kg value/Kg Titanium 10 $5,000 $6,000 $4,000 Carbon fibre 30 $800 $1,000 $700 Carbon fibre is used on a regular basis by the company but titanium is not; if the contract is not awarded, the company will not purchase any more titanium to hold in stock. What is the relevant cost of the materials if they are used to manufacture the unique machine