Tara Inc. is considering using stocks of an old raw material in a special project. The special project would require all 160 kilograms of the raw material that are in stock and that originally cost the company $1,136 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $7.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $6.50 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 $75.00 for all 160 kilograms. What is the relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Tara Inc. is considering using stocks of an old raw material in a special project. The special project would require all 160 kilograms of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Dollar general and family dollar are examples of full-price discount retailers. True or False
Answers (1)
On the first day of the fiscal year, Shiller Company borrowed $63,000 by giving a five-year, 12% installment note to Soros Bank. The note requires annual payments of $17,773, with the first payment occurring on the last day of the fiscal year.
Answers (1)
Not all types of work are covered by a minimum wage. True False
Answers (2)
An early economic system mercantilism was founded on what practice
Answers (1)
Consider a society that must choose between making automobiles and tractors. The quantity of automobiles produced is graphed on the vertical axis on the PPF.
Answers (1)
New Questions in Business
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.56 percent, a par value of $1,000 per bond, matures in 5 years, has a total face value of $3.9 million, and is quoted at 106 percent of face value.
Answers (1)
In what federal body do all bills concerning taxes originate?
Answers (1)
True or false There are no jobs that are able to fit into multiple career categories
Answers (1)
Having a good credit score is important because A it can impact your ability to get your drivers license
Answers (1)
During the year, Apex Co. sold an unprofitable component of the company. The component had a net loss from operations during the period of $150,000 and its assets sold at a loss of $100,000.
Answers (1)