Required Information Exercise 14-36 Speclal Order (LO 14-4, 14-5) [The following information applies to the...
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Required Information Exercise 14-36 Speclal Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental Chemical Company, located in Buenos Alres, Argentina, recently recelved an order for a product it does not normally produce. Since the company has excess production capacity, management is considering accepting the order. In analyzing the decision, the assistant controller is compiling the relevant costs of producing the order. Production of the special order would require 8,400 kllograms of theolite. Intercontinental does not use theolite for Its regular product, but the firm has 8,400 kllograms of the chemical on hand from the days when it used theolite regularly. The theolite could be sold to a chemical wholesaler for 15,500p. The book value of the theolite is 2.40p per kllogram. Intercontinental could buy theolite for 2.80 p per kllogram. ( p denotes the peso, Argentina's national monetary unit. Many countries use the peso as their unit of currency. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar.) Exercise 14-36 Part 1 Required: 1-a. What is the relevant cost of theolite for the purpose of analyzing the special-order decision? 1-b. The relevant cost of theolite for the purpose of analyzing the special-order decision is an example of: Complete this question by entering your answers in the tabs below. What is the relevant cost of theolite for the purpose of analyzing the special-order decision? (Enter your answer in pesos.) Requlred Information Exercise 14-36 Speclal Order (LO 14-4, 14-5) [The following Information applies to the questions displayed below.] Intercontinental Chemical Company, located in Buenos Alres, Argentina, recently recelved an order for a product it does not normally produce. Since the company has excess production capacity, management is considering accepting the order. In analyzing the decision, the assistant controller Is compiling the relevant costs of producing the order. Production of the special order would require 8,400kllograms of theolite. Intercontinental does not use theolite for its regular product, but the firm has 8,400 kllograms of the chemical on hand from the days when It used theolite regularly. The theolite could be sold to a chemical wholesaler for 15,500p. The book value of the theolite is 2.40p per kllogram. Intercontinental could buy theolite for 2.80p per kllogram. ( p denotes the peso, Argentina's national monetary unit. Many countrles use the peso as their unit of currency. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar.) Exercise 14-36 Part 2 2. Identify the relevance of each of the numbers given in the exercise in making the decision
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