Nature Ltd produces skincare products using local harvested seaweed. It has been approached by a new customer and asked to produce a special order moisturising cream.

If Nature undertake the project, they will need to utilise a new piece of equipment for the project. They currently have a similar piece of equipment which is used to produce a cleanser in Division A, that could be transferred onto this special order but it would need to be modified at a cost of 4,000. This machine would then need to be replaced in Division A at a cost of 20,000. The alternative is to leave the machinery in Division A and purchase the required machine for 40,000.

What is the relevant cost of the machine for costing this special order?

	a.	64,000
	b.	40,000
	c.	4,000
	d.	24,000