Turin Ltd has been asked to give a quote for making a large piece of earth-moving equipment. The order will require 80 units of Component 853Q. There are 20 units of this component already held by the business, which cost

45 each. They have a resale value of 30 each. The business uses this component on a regular basis and was about to place an order for 30 more units at a cost of 50

each. If, however, an order of more than 70 units is placed, the cost of Component 853Q will reduce to 40 each.

What is the relevant cost of Component 853Q for the purposes of the quote?

Th answer is supposed to be 2900, how do I work towards this?

Thanks