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MC Question 15

A company has received a special order for which it is considering the use of material B which it has held in its inventory for some time. This inventory of 945 kg was bought at $4·50 per kg. The special order requires 1,500 kg of material B. If the inventory is not used for this order, it would be sold for $2·75 per kg. The current price of material B is $4·25 per kg.

What is the total relevant cost of material B for the special order?

A. $4,957·50
B. $6,375
C. $4,125
D. $6,611·25