Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Jul 2017 My Price 4.00

Roddey Corporation

elevant cost of materials Roddey Corporation is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to generate additional profits. A potential customer has offered to buy 2,900 units of component GEE. Each unit of GEE requires 3 units of material R39 and 8 units of material I59. Data concerning these two materials follow: material units original cost current market disposal value per in stock per unit price per unit unit R39 340 $4.70 $4.35 $3.95 I59 23,700 $8.20 $8.05 $6.85 Material R39 is in use in many of the company's products and is routinely replenished. Material I59 is no longer used by the company in any of its normal products and existing stocks would not be replenished once they are used up. What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product GEE?

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 03:07 PM My Price 4.00

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