Assuming the delivery cost is $68. The relevant cost of the 180 kilograms of the raw material when deciding whether to proceed with the special project is $1,075.
Using this formula
Relevant cost=(Raw materialĂ—Discounted price)-Delivery cost
Where:
Raw material=180 kilograms
Discounted price=$6.35
Delivery cost=$68
Let plug in the formula
Relevant cost=(180 kilogramĂ—$6.35)-$68
Relevant cost=$1,143-$68
Relevant cost=$1,075
Inconclusion the relevant cost of the 180 kilograms of the raw material when deciding whether to proceed with the special project is $1,075.
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