General Studies · Cost Accounting
Azhar has received a request to make a special version of one of its products, which will use 2,000 units of material X. Azhar no longer uses material X, but there are 2,000 units left in inventory purchased at $4.00 per unit. The current purchase price is $4.75 per unit. Azhar believes it could sell material X for $3.00 per unit. However, material X is similar to material Y (currently in use) which costs $6.50 per unit. X could be used in place of Y by spending $2.75 per unit for modification. What is the relevant cost per unit of material X for manufacturing the special version?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$4.75
- 2$4.00
- 3$3.75✓
- 4$3.00
Correct answer
$3.75
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