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Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already has 280 liters of

Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already has 280 liters of this raw material in stock that originally cost $6.10 per liter. Material R19S is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $5.45 per liter. New stocks of the material can be readily purchased for $6.20 per liter. What is the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order?

A.

A.

$5,006

B.

B.

$5,456

C.

C.

$4,796

D.

D.

$5,456

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