Two months ago, Air-tite Corporation purchased 6,000 pounds of Hydrol, paying $21,000. The demand for this product
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Question:
Two months ago, Air-tite Corporation purchased 6,000 pounds of Hydrol, paying $21,000. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.15 per pound. (Air-tite can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 5,200 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order?
Multiple Choice
The 800-pound remaining inventory of Hydrol.
The $4.15 market price.
The $3.50 purchase price. 6,000 pounds of Hydrol.
Two or more of the factors are relevant.
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