Question
Wonders Corporation is preparing a bid for a special order that would require 710 liters of material A52N. The company already has 560 liters of
Wonders Corporation is preparing a bid for a special order that would require 710 liters of material A52N. The company already has 560 liters of this raw material in stock that originally cost $6.30 per liter. Material A52N 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 $5.85 per liter. New stocks of the material can be readily purchased for $6.45 per liter. What is the relevant cost of the 710 liters of the raw material when deciding how much to bid on the special order?
Select one: a. $4,795.20 b. $4,153.50 c. $3,528.10 d. $4,579.50
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