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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
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)$6,611.25
C)$6,375
D)$4,125
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