Waterway Industries budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017:

	June 30, 2017	June 30, 2016
Raw Materials	4000 kilos	1000 kilos

Three kilos of raw materials are needed to produce each unit of finished product. If Waterway Industries plans to produce 600000 units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?

A. 1808000

B. 1799000

C. 1800000

D. 1803000

A companys unit costs based on 100000 units are:

Variable costs	$75
Fixed costs	30

The normal unit sales price per unit is $160. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 3000 units of regular sales would have to be foregone. The opportunity cost associated with this order is

A. $225000.

B. $270000.

C. $480000.

D. $405000.

Which of the following is not relevant information in a decision whether old equipment presently being used should be replaced by new equipment?

A. The cash price of the new equipment.

B. The book value of the old equipment.

C. The salvage value of the old equipment.

D. The cost savings if the new equipment is purchased.