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Relevant cost of material

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A company is preparing a bid that requires 757 lbs of material. They have 602 lbs in stock that originally cost 8.03/lb. Resale value of existing stock is 7.41/lb, New stock can be purchased at 8.17/lb. What is relevant cost of material in deciding how much to bid on special order?

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The solution explains how to determine the relevant cost of material for a special order.

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Relevant cost is the cash flow incurred in accepting the special order. The relevant cost is 8.17/lb the ...

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