Shrewsbury Limited is a small specialist manufacturer of components used in the manufacture of yachts. Shrewsbury Limited has been asked to supply 550 identical components to one of its major customers over the next year, and is deciding whether to accept the order. Each component uses 10kg of aluminium. Shrewsbury Limited currently has inventories of 11,000kg of aluminium, which were bought at a cost of 11 per kg. The current selling price of aluminium is 13 per kg. Future purchases of aluminium are likely to be at 15 per kg. The company uses aluminium continuously in its production departments. At what price should the aluminium be included in calculations of the relevant costs of accepting the order? (Complete the necessary drop down and answer box.)

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Part 1

The relevant cost to be included in the price calculations is:

Relevant price			()
Current value of aluminium