Knedler Corporation Is Preparing a Bid for a Special Order

question 115

Multiple Choice

Knedler Corporation is preparing a bid for a special order that would require 720 liters of material C01D. The company already has 200 liters of this raw material in stock that originally cost $9.90 per liter. Material C01D 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 $9.60 per liter. New stocks of the material can be readily purchased for $10.10 per liter. What is the relevant cost of the 720 liters of the raw material when deciding how much to bid on the special order?

• A) $7,232
• B) $7,272
• C) $6,912
• D) $6,972

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Definitions:

Costs

The amount of money required to purchase goods or services, or the expenditure incurred in the production of goods or services.

Past Communications

The term refers to previous exchanges of information or dialogues between parties, which could be in the form of emails, letters, meetings, etc.

Patients

Individuals receiving medical treatment, care, or evaluation from healthcare professionals or in a medical setting.

Available

Relating to something that is ready for use, accessible, or can be obtained.