A company is calculating the relevant cost of the material to be used on a particular contract. The contract requires 4,200 kgs of material H and this can be bought for $6.30 per kg. The company bought 10,000 kgs of material H some time ago when it paid $4.50 per kg. Currently 3,700 kgs of this remains in inventory. The inventory of material H could be sold for $3.20 per kg. The company has no other use for material H other than on this contract, but it could be modified it at a cost of $3.70 per kg and use it as a substitute for material J. Material J is regularly used by the company and can be bought for $7.50 per kg.

What is the relevant cost of the material for the contract?

A $17,210

B $19,800

C $26,460

D $30,900