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Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical units of component X to a customer. To manufacture

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Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical units of component X to a customer. To manufacture one unit of component X, Bright requires 4kg of material A. Bright currently has 3,000kg of material A in stock which had an original cost of E4.20 per kg. The current replacement cost of material A is E4.75 per kg and its scrap value is E2 per kg; material A is in constant use by the business. What is the total relevant cost of using material A for this special contract? T O a. E29,750 O b. E38,000 O C. E36,350 O d. E23,750 s page Next page

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