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Question - Material X is regularly used by John for production and usually costs RM5 per liter. However, John's current supplier's earliest delivery time for Material X is in three weeks' time. An alternative supplier could deliver it immediately but will be charging additional transportation fee of RM150. John already has 400 liters in inventory but 200 is already committed for the production of other jobs. A production contract was received by John for delivery in two weeks' time and will require 300 liters of material X. Late penalty for the delivery for this job will result in a penalty of RM200 per week and John is expecting delivery can be made in four weeks' time. Calculate the relevant costs (to the nearest RM) of material X for the job.
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