EKP Purchased a Raw Material in Bulk for $10,000

question 76

Multiple Choice

EKP purchased a raw material in bulk for $10,000.It then spent an additional $500 to package the product into smaller quantities which it can sell for $12,000.Recently, a situation has arisen in which EKP can add an additional ingredient to the individual packages and sell them for $14,000.The cost of adding the additional ingredient is $1,700.Which amounts are relevant to the decision?

• A)$10,000 + $500, $12,000 and $14,000
• B)$10,000 + $500, $1,700 and $14,000
• C)$12,000, $1,700 and $14,000
• D)$10,000, $500, $12,000, $14,000 and $1,700

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