$9,650
$2,350
$3,750
$2,750
✅ The correct answer is C.
Relevant incremental cost = Relevant carrying cost of inventory – Relevant opportunity cost of capital
= $6700 – $2950 = $3,750
Relevant incremental cost = Relevant carrying cost of inventory – Relevant opportunity cost of capital
= $6700 – $2950 = $3,750