Q plc makes two products- Quone and Qutwo - from the same raw material. The selling price and cost details of these products are as shown below:

	Quone	Qutwo
	()	()
Selling price	20.00	18.00
Direct material (2.00/kg)	6.00	5.00
Direct labour	4.00	3.00
Variable overhead unit	2.00	1.50
	12.00	9.50
Contribution per unit	8.00	8.50

The maximum demand for these products is:

Quone	500 units per week
Qutwo	unlimited number of units per week

If materials were limited to 2000 kg per week, the shadow price (opportunity cost) of these materials would be:

(a) nil;

(b) 2.00 per kg;

(c) 2.66 per kg;

(d) 3.40 per kg;

(e) none of these.