A Company Decides to Close Down Its Plastics Division

question 79

Multiple Choice

A company decides to close down its plastics division. It has on hand 20 tons of styrene monomer, a raw material that has a market price of $800 per ton, which had been originally purchased at $750 per ton. Given that the company has no use for the styrene monomer, and that it would cost the company $5200 to store it, what is the total value of the 20 tons of styrene monomer to the company?

• A) -$5200
• B) $0
• C) $15,000
• D) $16,000

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