Business, 22.02.2020 03:37 proutyhaylee
Exercise 14-37 Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental’s special order requires 1,300 kilograms of genotype, a solid chemical regularly used in the company’s products. The current stock of genotype is 9,900 kilograms at a book value of 9.20 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 9.80 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.40 p when normal restocking takes place. Any order of genatope must be in the amount of 6,600 kilograms. Exercise 14-37 Part 1 Required: 1. What is the relevant cost of genatope?
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Exercise 14-37 Special Order (LO 14-4, 14-5) [The following information applies to the questions dis...
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