C$.$ Bird Enterprises $($CBE$)$ is evaluating a special order it has received for a silicon$-$based component to be used in low$-$cost solar panels. CBE would like to support this initiative to increase adoption of solar power. Moreover, the company has recently been operating at less than full capacity, so the firm's management will accept the order as long as the price offered exceeds the costs that will be incurred in producing the panels. Brooks & Angelou has been asked for advice on how to determine the cost of two raw materials that would be required to produce the order.

A$.$ The special order will require $800$ gallons of zante, a highly perishable material that is purchased as needed. CBE currently has $1,200$ gallons of zante on hand, because the material is used in virtually all of the company's products. The last time zante was purchased, CBE paid $$5\mathrm{.}00$ per gallon. However, the average price paid for the zante in stock was only $$4\mathrm{.}75.$ The market price for zante is quite volatile, with the current price at $$5\mathrm{.}50.$ If the special order is accepted, CBE will have to place a new order next week to replace the $800$ gallons of zante used. By then the price is expected to reach $$5\mathrm{.}75$ per gallon. What is the real cost of zante if the special order is produced?

B$.$ The special order also would require $1,500$ kilograms of vitis, a material not normally required in any of C$.$ Bird Enterprises' regular products. The company does happen to have $2,000$ kilograms of vitis on hand, because it formerly manufactured a silicon$-$based product that used the material. CBE recently received an offer of $$14,000$ from Solo Industries for its entire supply of vitis, However, Solo Industries is not interested in buying any quantity less than CBE's entire $2,000-$kilogram stock. CBE's management is unenthusiastic about Solo's offer, because CBE paid $$20,000$ for the vitis. Moreover, if the vitis were purchased at today's market price, it would cost $$11\mathrm{.}00$ per kilogram. Due to the volatility of the vitis, CBE will need to get rid of its entire supply one way or another. If the material is not used in production or sold, CBE will have to pay $$1,000$ for each $500$ kilograms that is transported away and disposed of in a hazardous waste disposal site. What is the real cost of vitis to be used in the special order?