A company is considering a short-term pricing decision for a contract that would utilise some material P that it has held in inventory for some time. The company does not foresee any other use for the material. The work would require 1,000 kgs of Material P. There are 800 kgs of Material P in inventory, which were bought some time ago at a cost of $3 per kg. The material held in inventory could currently be sold for $3.50 per kg. The current purchase price of Material P is $4.50 per kg.

The relevant cost of Material P for the company to use when making its pricing decision for the contract is closest to:

A $3,300 

B $3,500 

C $3,700 

D $4,500