1. Schwarb Incorporated regularly uses material B and currently has in stock 469 liters of the material for which it paid $2,631 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.35 per liter. New stocks of the material can be purchased on the open market for $5.95 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 900 liters of the material to be used in a job for a customer. The relevant cost of the 900 liters of material B is:
   1. $4,815
   2. $5,950 X
   3. $5,355 X
   4. $5,070

My understanding is the relevant cost of the 900 liters of material B is:

Relevent cost Matl B = 5.95/litre (900 litre) = 5,950.

Can't be #3 either.