Hamby Corporation Is Preparing a Bid for a Special Order

question 432

Multiple Choice

Hamby Corporation is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. Material W34C is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $7.60 per liter. New stocks of the material can be readily purchased for $8.35 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

• A) $6,481
• B) $6,376
• C) $6,513
• D) $5,928

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Definitions:

Recolor

A feature in graphic design and photo editing software that allows users to change the color scheme of an image or graphic element.

Hues

The attribute of a color by which it is discernible as red, green, blue, etc., reflecting its position in the spectrum.

Stacked Object

A graphic design term referring to objects layered on top of each other within a digital or physical space.

Stack

A method of layering objects or data in a specified sequence, often used in programming and design.