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of this raw material on the open market, it would cost $7.90 per kilogram, Howev

ID: 2585086 • Letter: O

Question

of this raw material on the open market, it would cost $7.90 per kilogram, However, the compeny has no other use for this raw material and would sell t at the discouneed price of $7.20 per kilogram if it were not used in the special project. The sale of the rew material would involve delilvery to the purchaser at a total cost of $74 for all 150 kilograms. What is êhe relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project? o $1.165 O $1080 O $1385 MacBook Air 8 5 KL

Explanation / Answer

Relevant cost for 150 kilograms = (150*7.2)-74= 1006 Option 4 is correct

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