Alpha Co has 200 units of material x in inventory. This originally cost ($40) per unit. Alpha

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Alpha Co has 200 units of material x in inventory. This originally cost \($40\) per unit.

Alpha Co no longer needs the material x for its original use. It could sell the inventory for \($10\) per unit. However, the production manager wishes to use the material x in a new project. What is the relevant cost of using the 200 units of material x in the new project?

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