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QUESTION 16 6 points Save Answer The production of a special product, Alpha, is being considered to use up the spare capacity which is available

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QUESTION 16 6 points Save Answer The production of a special product, Alpha, is being considered to use up the spare capacity which is available this year. This product is unlikely to be produced in future years. It requires 200 kg of material A15 which has been in stock since it was purchased last year for an order which was subsequently cancelled. No other use for the material is envisaged at the present time. It had cost 35 per kg, whereas new supplies would now cost 30 per kilo. However, if this old stock was resold today it would realise only 20 per kg. The relevant cost of material A15 in assessing the special product is: O A. 6,000 B. Zero OC. 7,000 OD. 4,000

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