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What is the relevant cost of genatope

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Question -  International Chemical Company's special order also requires 1 000 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8 000 kilograms at a carrying amount of $16.20 per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of $17.40 per kilogram. Without the special order, the purchasing manager predicts that the price will be $16.60 when normal restocking takes place. The order size for genatope is 5 000 kilograms.

1. What is the relevant cost of genatope?

2. Discuss each item of numerical data detailed in this exercise in terms of its relevance to the decision?

Reference no: EM132146263

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