Two months ago, Tippett Inc. purchased 5,500 litres of Drysol at $2.40 per litre, paying $13,200. The demand for this product has been very strong since the acquisition, with the current market price at $5.05 per litre. The company recently received a special-order inquiry, one that would require the use of 4,000 litres of Drysol. Which of the following is (are) relevant in deciding whether to accept the special order?
A) The 1,500 litres remaining inventory of Drysol.
B) The $5.05 market price.
C) The $2.40 purchase price.
D) 5,500 litres of Drysol.
E) The market price less the price paid.
Correct Answer:
Verified
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