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Adesina Anil Incorporated regularly uses material of premium spirit and presently has in stock 365liters of the material, for which it paid $2,500 several weeks

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Adesina Anil Incorporated regularly uses material of premium spirit and presently has in stock 365liters of the material, for which it paid $2,500 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $6.25per liter. New stocks of the material can be purchased on the open market for $7.20 per liter, but it must be purchased in lots of 1,000 liters. You've been asked to determine the relevant cost of 900 liters of the material to be used in a job for a customer. What's the relevant cost of the 900 liters of material premium spirit? The total marks for this question is 4 marks

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