Question: 16 Austin, Inc. is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters
16 Austin, Inc. is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.10 per liter. Material W34C is used in the company's main product and is replenished on a regular basis. New stocks of the material can be readily purchased for $8.50 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order? A. $6,374 $6,474 $6,318 $6,630 E. None of the above Page 10 of 17
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