Two Months Ago, Air-Tite Corporation Purchased 4,500 Pounds of Hydrol

question 29

Multiple Choice

Two months ago, Air-tite Corporation purchased 4,500 pounds of Hydrol, paying $15,300. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.05 per pound. (Air-tite can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 4,200 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order?

• A) The 300-pound remaining inventory of Hydrol.
• B) The $4.05 market price.
• C) The $3.40 purchase price.
• D) 4,500 pounds of Hydrol.
• E) Two or more of the other factors are relevant.

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