Exercise $14-36$ Special Order $($LO $14-4,14-5)$

$[$The following information applies to the questions displayed below.$]$

Intercontinental Chemical Company, located in Buenos Aires, Argentina, recently received an order for a product it does

not normally produce. Since the company has excess production capacity, management is considering accepting the

order. In analyzing the decision, the assistant controller is compiling the relevant costs of producing the order. Production

of the special order would require $9,500$ kilograms of theolite. Intercontinental does not use theolite for its regular

product, but the firm has $9,500$ kilograms of the chemical on hand from the days when it used theolite regularly. The

theolite could be sold to a chemical wholesaler for $15,100p.$ The book value of the theolite is $2\mathrm{.}50p$ per kilogram.

Intercontinental could buy theolite for $2\mathrm{.}90p$ per kilogram. $(p$ denotes the peso, Argentina's national monetary unit. Many

countries use the peso as their unit of currency. On the day this exercise was written, Argentina's peso was worth $0\mathrm{.}104$

U$.$S$.$ dollar.$)$

What is the relevant cost of theolite for the purpose of analyzing the special$-$order decision? $($Enter your answer in pesos.$)$

Relevant cost

The relevant cost of theolite for the purpose of analyzing the special$-$order decision is an example of:

The relevant cost of theolite for the purpose of analyzing the special$-$order decision is an example of: