Staverton Manufacturers Ltd has the following materials in inventories:

	Y50	Y60
No. of units held	100	150
Purchase cost per unit	7	12
Net realisable value	6	5
Replacement cost	8	4

The company has been asked to tender for a contract that requires 200 units of Y50 and 100 units of Y60.

Y50 cannot be used for any other purpose within the business except the new contract.

Y60 is in frequent use by the company.

What is the relevant cost of the materials for the purpose of pricing the contract?

A.

1,800

B.

1,900

C.

2,100

D.

2,600