If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be
A. $9,650
B. $2,350
C. $3,750
D. $2,750
Answer: Option C
Solution(By Examveda Team)
Relevant incremental cost = Relevant carrying cost of inventory - Relevant opportunity cost of capital= $6700 - $2950 = $3,750
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