(SOLVED) Refer to the data given in Exercise 19 24 Global Chemical


Question Description:

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Refer to the data given in Exercise 19.24. Global Chemical Company’s special order also requires 1000 kilograms of genatope, a solid chemical regularly used in the company’s products. The current stock of genatope is 8000 kilograms at a carrying amount of $8.10 per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of $8.70 per kilogram. Without the special order, the purchasing manager predicts that the price will be $8.30 when mal restocking takes place. The order size for genatope is 5000 kilograms.
Required:
1. What is the relevant cost of genatope?
2. Discuss each item of numerical data detailed in this exercise in terms of its relevance to the decision.

Answer

$15