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A company requires 600 kg of raw material Z for a contract it is evaluating. It has 400 kg of material Z in stock which
were purchased last month. Since then the purchase price of material Z has risen by 8% to £27 per kg. Raw material
Z is used regularly by the company in normal production.
What is the total relevant cost of raw material Z to the contract?
A £15,336
B £15,400
C £16,200
D £17,496

C

c

TOP

C

TOP

C

TOP

B

TOP

B

TOP

b

TOP

c

TOP

c

TOP

B

TOP

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