Business, 30.11.2019 03:31 malacath3394

Janus corporation has in stock 43,700 kilograms of material l that it bought five years ago for $6.10 per kilogram. this raw material was purchased to use in a product line that has been discontinued. material l can be sold as is for scrap for $3.23 per kilogram. an alternative would be to use material l in one of the company's current products, e99d, which currently requires 2 kilograms of a raw material that is available for $9.45 per kilogram. material l can be modified at a cost of $0.62 per kilogram so that it can be used as a substitute for this material in the production of product e99d. however, after modification, 3 kilograms of material l is required for every unit of product e99d that is produced. janus corporation has now received a request from a company that could use material l in its production process. assuming that janus corporation could use all of its stock of material l to make product e99d or the company could sell all of its stock of the material at the current scrap price of $3.23 per kilogram, what is the minimum acceptable selling price of material l to the company that could use material l in its own production process?

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Janus corporation has in stock 43,700 kilograms of material l that it bought five years ago for $6.1...

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