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Lampshire Inc

question 152

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Lampshire Inc.is considering using stocks of an old raw material in a special project.The special project would require all 160 kilograms of the raw material that are in stock and that originally cost the company $1,136 in total.If the company were to buy new supplies of this raw material on the open market,it would cost $7.25 per kilogram.However,the company has no other use for this raw material and would sell it at the discounted price of $6.50 per kilogram if it were not used in the special project.The sale of the raw material would involve delivery to the purchaser at a total cost of $75 for all 160 kilograms.What is the relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project?

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Self-Confidence

The subjective sense of trust in one's abilities, qualities, and judgment, influencing an individual's approach to challenges, relationships, and responsibilities.

Minority Opinions

Views or beliefs that are held by a smaller segment of a group, contrasting with the majority viewpoint.

Carefully Processed

Pertaining to information or data that has been meticulously examined or considered with attention to detail and accuracy.

Distinctive

Having a unique quality or characteristic that sets someone or something apart from others.

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