Young co. produces computers, which sell for £400 each. A new customer wants to order 1,000 units at £300 per unit. Production costs per unit are: Direct materials £90, Direct Labour £120, Variable overheads £50, fixed overheads £60.

In the short-term, what is the relevant cost of producing one more computer for this order?

1. £140

2. £210

3. No answer is correct

4. £320

5. £260