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Schwartz Incorporated regularly uses material BU and currently has in stock 460 liters ...

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Accounting

Schwartz Incorporated regularly uses material BU and currently has in stock 460 liters
of the material for which it paid $3,128 several weeks ago. If this were to be sold as is
on the open market as surplus material, it would fetch $5.75 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
760 liters of the material to be used in a job for a customer. The relevant cost of the
760 liters of material B is:
a. $4,522
b. $6,450
c. $4,370
d. $4,902
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