Recently received a special-order inquiry

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Reference no: EM13793774

Two months ago, Victory Corporation purchased 5,500 pounds of Hydrol, paying $18,700. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.05 per pound. (Victory can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 5,100 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order?

A) The 400-pound remaining inventory of Hydrol.

B) The $4.05 market price.

C) The $3.40 purchase price.

D) 5,500 pounds of Hydrol.

E) Two or more of the above factors are relevant.

Reference no: EM13793774

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