Scherer Corporation is preparing a bid for a special order that would require 720 liters of material U48N. The company already has 560 liters of this raw material in stock that originally cost exist6.30 per liter. Material U48N is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is exist5.80 per liter. New stocks of the material can be readily purchased for exist6.65 per liter. What is the relevant cost of the 720 liters of the raw material when deciding how much to bid on the special order? A. exist4, 592 B. exist4, 788 C. exist4, 456 D. exist4.176 23. A study has been conducted to determine if Product A should be dropped. Sales of the product total exist200,000 per year, variable expenses total exist140,000 per year. Fixed expenses charged to the product total exist90,000 per year. The company estimates that exist40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would: A. decrease by exist20,000 per year B. increase by exist20,000 per year C. decrease by exist10,000 per year D. increase by exist30,000 per year If the purchasing manager attempts to reduce the company's total manufacturing costs by purchasing less expensive but lower quality raw materials, which of the following variances is most likely to occur? A. Unfavorable labor efficiency variance B. Unfavorable materials price variance C. Favorable labor rate variance D. Favorable materials quantity variance Two alternatives, code-named X and Y, are under consideration at Afalava Corporation. Costs associated with the alternatives are listed below. What is the differential cost of Alternative B over Alternative A, including all of the relevant costs? A. exist44,000 B. exist149,000 C. exist105,000 D. exist127,000