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What is the relevant cost of genatope

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Reference no: EM133173246

Question - Intercontinental's special order requires 1,200 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8,600 kilograms at a book value of 9.50 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 10.10 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.70 p when normal restocking takes place. Any order of genatope must be in the amount of 5,900 kilograms. What is the relevant cost of genatope?

Reference no: EM133173246

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