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The current purchase price of material D is $4 per kilogram.
If the material D that the company currently holds is not used in the job in question it will be scrapped a cost of $0.50 per kilo gram. What is the relevant cost of the400 kgs of material D?
a) $440
b) $550
c) $650
d) $575
best answer is the selection b) $
I go with answer b ) $550...............