Otool Incorporated Is Considering Using Stocks of an Old Raw

Multiple Choice

Otool Incorporated is considering using stocks of an old raw material in a special project. The special project would require all 190 kilograms of the raw material that are in stock and that originally cost the company $2,456 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $7 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $6.10 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 total cost of $63 for all 190 kilograms. What is the relevant cost of the 190 kilograms of the raw material when deciding whether to proceed with the special project?

A) $1,159
B) $1,096
C) $1,273
D) $1,292