Halford Manufacturing Limited is considering whether to accept a contract to produce a special order which would require 1500 labour hours.

Labour is normally paid 15$ per hour, with double time paid for any overtime worked. If the special product is produced, the additional hours would all be worked as overtime. In addition, a number of other jobs, which would make a contribution of 1800$ could not be carried out.

What is the relevant cost of labour (in $) in evaluating this special product?

a) 22,500

b) 43,200

c) 45,000

d) 46,800