Determining the relevant cost

Reference no: EM13154779

Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already has 280 liters of this raw material in stock that originally cost 6.20 per liter. Material R19S 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 5.45 per liter. New stocks of the material can be readily purchased for 6.20 per liter. What is the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order?

5,456

5,006

4,796

5,956

Reference no: EM13154779

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