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What is the relevant cost

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Question - Hamby Corporation is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost P8.30 per liter. Material W34C 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 P7.60 per liter. New stocks of the material can be readily purchased for P8.35 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

a. P6,481

b. P6,513

c. P6,376

d. P5,928

Reference no: EM132976942

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