Jacob, an auditor for Green CPAs, is auditing XYZ Co. Green CPAs uses an average method for calculating materiality, in which equal weight is given to each of the following materiality calculations: 5 percent of pretax income, 0.5 percent of total assets, 2 percent of equity, and 1 percent of revenue. Select financial information from XYZ's financial statements is provided below $505,000 Revenue Pretax income $150,000 Assets Liabilities $350,000 $75,000 Based on the facts above, what is the overall materiality that Jacob should use for XYZ Co.? $2,700 $3,950 $4,950 $19,800