Covid Ltd manufactures toilet rolls and face masks. It has decided to revamp its image by repackaging its existing inventory in new covers, and to offer discounts to customers for prompt payment.

The financial details of one of the items to be repackaged, are as follows.

Per item

Cost of manufacture 2.50

Repackaging cost to be incurred 0.75

Selling price 3.00

Prompt payment discount 10%

At what amount should each new packaged item be included in inventory?

A) 3.00

B) 2.70

C) 2.50

D) 2.25