Staria 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 4,270 units of component JOLT. Each unit of JOLTrequires 6 units of material OXB and 9 units of material POW6. Data concerning these two materials follows:MaterialOX8PON6Units in Original Cost Current Market Disposal ValuePrice Per UnitPer UnitPer Unit$ 3.74$ 4.05$ 3.49$ 3.34$ 3.15$2.00Stock25,60038,980Material OX8 is in use in many of the company's products and is routinely replenished. Material POWS 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 JOLT? (CMA adepted)OOOOMultiple Choice$171,801.$224,091$180,621.$237.351,

In business and finance, relevant cost refers to unique and important costs or revenues that should…

Staria 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 4,270 units of component JOLT. Each unit of JOLT requires 6 units of material OXB and 9 units of material POW6. Data concerning these two materials follows: Material OX8 PONG Units in Original Cost Stock Per Unit 25,600 $ 3.74 38,980 $ 3.34 Material OX8 is in use in many of the company's products and is routinely replenished. Material POWS 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 JOLT? (CMA adapted) Multiple Choice OOO $171,801 $224,091 $180,621 Current Market Disposal Value Price Per Unit Per Unit $ 4.05 $ 3.49 $ 3.15 $ 2.00 $237.351.

Staria 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 4,270 units of component JOLT. Each unit of JOLT requires 6 units of material OXB and 9 units of material POW6. Data concerning these two materials follows: Material OX8 PONG Units in Original Cost Stock Per Unit 25,600 $ 3.74 38,980 $ 3.34 Material OX8 is in use in many of the company's products and is routinely replenished. Material POWS 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 JOLT? (CMA adapted) Multiple Choice OOO $171,801 $224,091 $180,621 Current Market Disposal Value Price Per Unit Per Unit $ 4.05 $ 3.49 $ 3.15 $ 2.00 $237.351.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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