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Knedler Corporation is preparing a bid for a special order that would require 720 liters of material C01D. The company already has 200 liters of this raw material in stock that originally cost $9.90 per liter. Material C01D 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 $9.60 per liter. New stocks of the material can be readily purchased for $10.10 per liter. What is the relevant cost of the 720 liters of the raw material when deciding how much to bid on the special order?

A$7,272
B$6,972
C$7,232
D$6,912

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9867642

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