A company is considering a short-term pricing decision for a contract that would require 1,200 kg of Material B. There are 900 kg of Material B in inventory that were bought some time ago at a cost of 3 per kg. The company does not foresee any other use for the material. The material held in inventory could currently be sold for 3.50 per kg. The current purchase price of Material B is 4.50 per kg.

The relevant cost of Material B is:

Select one:

A.

4,050

B.

4,500

C.

4,200

D.

5,400