Hamby corporation is preparing a bid for a special order that would require 780 liters of material w34c. the company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. material w34c is used in the company's main product and is replenished on a periodic basis. the resale value of the existing stock of the material is $7.60 per liter. new stocks of the material can be readily purchased for $8.35 per liter. what is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

$6,513

Explanation:

The computation of the relevant cost is shown below:

= Number of liters of the raw material × purchase of raw material per liter

= 780 liters × $8.35 per liter

= $6,513

Simply we multiplied the Number of liters of the raw material with the purchase of raw material per liter so that accurate amount can come

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