Question: A business regularly uses material A and currently has inventory 100 kg for which it paid $1,000 last month. If this were to be sold

A business regularly uses material A and currently has inventory 100 kg for which it paid $1,000 last month. If this were to be sold as raw material today, it could be sold for $5 per kg. You are aware that the material can be bought on the open market for $15 per kg. A customer has made an order that will use 300 kg of the material. What is the relevant cost of 200 kg?

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