What is the relevant cost of the liters of the raw material

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Reference no: EM133906352

Problem

Park Corporation is preparing a bid for a special order that would require 780 liters of material SUN100. The company already has 580 liters of this raw material in stock that originally cost $6.80 per liter. Material SUN100 is used in the main product of the company and is replenished on a regular basis. The resale value of the existing stock of the material is $6.05 per liter. New stocks of the material can be readily purchased for $7.15 per liter. Get the instant assignment help. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

Reference no: EM133906352

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