Intercontinental$$s special order requires $1,300$ kilograms of genatope, a solid chemical regularly used in the company$$s products. The current stock of genatope is $9,300$ kilograms at a book value of $10\mathrm{.}00$ 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 $10\mathrm{.}60$ p per kilogram. Without the special order, the purchasing manager predicts that the price will be $10\mathrm{.}20$ p when normal restocking takes place. Any order of genatope must be in the amount of $6,400$ kilograms.

Exercise $14-37$ Part $2$

$2.$ Identify the relevance of each of the figures given in the exercise in terms of making the special$-$order decision.

Book Value

Quantity to be used in special order