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Schickel Inc.regularly uses material B39U and currently has in stock 460 liters of the material for which it paid $3,128 several weeks ago.If this were to be sold as is on the open market as surplus material,it would fetch $5.95 per liter.New stocks of the material can be purchased on the open market for $6.45 per liter,but it must be purchased in lots of 1,000 liters.You have been asked to determine the relevant cost of 760 liters of the material to be used in a job for a customer.The relevant cost of the 760 liters of material B39U is:
Market Share
The percentage of an industry's total sales that is earned by a particular company over a specified time period.
Initial Price
The original cost or price of a good or service when it is first offered for sale, often used as a baseline for pricing strategies.
Contribution Margin
The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and contribute to profit.
Machine Hour
A unit of measure representing the operation of a machine for one hour, often used in cost accounting.
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