Young co. produces computers, which sell for 400 each. A new customer wants to order 1,000 units at 300 per unit. Production costs per unit are: Direct materials 90, Direct Labour 120, Variable overheads 50, fixed overheads 60.

In the short-term, what is the relevant cost of producing one more computer for this order?

1. 140

2. 210

3. No answer is correct

4. 320

5. 260