Otool Inc.is considering using stocks of an old raw material in a special project.The special project would require all 240 kilograms of the raw material that are in stock and that originally cost the company $2,112 in total.If the company were to buy new supplies of this raw material on the open market,it would cost $9.25 per kilogram.However,the company has no other use for this raw material and would sell it at the discounted price of $8.35 per kilogram if it were not used in the special project.The sale of the raw material would involve delivery to the purchaser at a total cost of $71 for all 240 kilograms.What is the relevant cost of the 240 kilograms of the raw material when deciding whether to proceed with the special project?
A) $1,933
B) $2,004
C) $2,220
D) $2,112
Correct Answer:
Verified
Q46: In a sell or process further decision,consider
Q47: One of the employees of Davenport Corporation
Q48: Hodge Inc.has some material that originally cost
Q50: Product X-547 is one of the joint
Q55: Winder Corporation is a specialty component manufacturer
Q58: The opportunity cost of making a component
Q62: A joint product is:
A) any product which
Q65: United Industries manufactures a number of products
Q74: Costs that can be eliminated in whole
Q77: Which of the following costs are always
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents