Business, 21.12.2019 04:31, sarah5707

Otool inc. is considering using stocks of an old raw material in a special project. the special project would require all 150 kilograms of the raw material that are in stock and that originally cost the company $2,236 in total. if the company were to buy new supplies of this raw material on the open market, it would cost $8 per kilogram. however, the company has no other use for this raw material and would sell it at the discounted price of $7.10 per kilogram if it were not used in the special project. the sale of the raw material would involve delivery to the purchaser at a total cost of $86 for all 150 kilograms. what is the relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project?

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Otool inc. is considering using stocks of an old raw material in a special project. the special proj...