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Otool incorporated is considering using stocks of an old raw material in a special project....

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Accounting

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Otool incorporated is considering using stocks of an old raw material in a special project. The special project would require all t60 kilogearis of the raw material that are in stock and that originally cost the company $2.136 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price or $7.05 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a totat cost of $85 for all 160 kilograms. What is the relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project? Muntile choice $1234 $1,043 51240

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