Mcneilly inc is considering using stocks of an old raw

Assignment Help Project Management

Reference no: EM13363083

McNeilly Inc. is considering using stocks of an old raw material in a special project. The special project would require all 220 kilograms of the raw material that are in stock and that originally cost the company $1804 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.55 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.75 per kilogram if it were not used int he special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $97 for all 220 kilograms. What is the relevant cost of the 220 kilograms of the raw material when deciding weather to proceed with the special project.

Reference no: EM13363083

Questions Cloud

Two contractors decide to enter into a joint venture on a : two contractors decide to enter into a joint venture on a project. what difficulties can occur if the contractors have

You have been asked to be the project manager for the : you have been asked to be the project manager for the development of an information technology it project. the system

What constitutes a project1 what constitutes a project : what constitutes a project?1. what constitutes a project? based on the weekly reading or pmi pmbok what is the

Directed research projecthow important is it maintain a : directed research projecthow important is it maintain a schedule of completion when working on an assignment of this

Mcneilly inc is considering using stocks of an old raw : mcneilly inc. is considering using stocks of an old raw material in a special project. the special project would

Cost benefits analysiswhen performing a cost benefits : cost benefits analysis.when performing a cost benefits analysis cba cba how do you validate assumptions and apply

To ensure that this project is aligned with business goals : to ensure that this project is aligned with business goals. based on experience at other companies describe a situation

What are the main reasons for it project failure and what : what are the main reasons for it project failure and what is the most important thing that management can do to

Salem co is considering a project that yields annual net : salem co. is considering a project that yields annual net cash inflows of 420000 for years 1 through 5 and a net cash

User Account

All Pages