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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 567 kg was bought at $270 per kg. The special order requires 900 kg of material B. If the inventory is not used for this order, it would be sold for $165 per kg. The current price of material B is $255 per kg.
What is the total relevant cost of material B for the special order?
A) $1,485
B) $1,78470
C) $2,380.05
D) $2,295
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