Question: In order to utilize some spare capacity, Chola is preparing a quotation for a special order which requires 1,000 kilograms of material G. Chola

In order to utilize some spare capacity, Chola is preparing a quotation for a special order which requires 1,000 kilograms of material G. Chola has 600 Kg of material G in stock (original cost K5, 000 per Kg). Material G is used in the company's main product Q. The resale value of material G is K4, 000 per Kg. The present replacement price of material M is K6, 000. Material G is readily available on the market. The relevant cost of the 1000 Kgs of material R to be included in the quotation is : A. K4 million B. K5 million C. K5.4 million D. K6 million

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