Due to a Pre-Existing Contract,Recycle America Inc

question 38

Multiple Choice

Due to a pre-existing contract,Recycle America Inc.has the opportunity to acquire 10,000 pounds of scrap aluminum and 2500 pounds of scrap lead for $10,750.If the current market price for scrap aluminum is $0.83 per pound and the current market price for lead is $1.06 per pound,then the added benefit (cost) to you if you acquire this metal is:

• A)($200).
• B)$200.
• C)($1925).
• D)$1925.