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Question - Mitchell ltd requires 200 units of Material M for a special order for a customer. Currently, the company has 120 units of Material M as the result of previous overbuying. It bought the 120 units for £30 per unit two months ago. The 120 units of Material M could be scrapped for £10 per unit. Alternatively, the company could use the 120 units of Material M as a substitute for 180 units of Material X, which are about to be purchased at a price of £15 per unit. The price for any future purchases of Material M is £35 per unit. What is the relevant cost of using Material M for the special order?
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