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JananiM Co. has a printing department that is considering whether to print brochure to promote a charity function. The brochure requires 250 reams of a special type of paper.
The department currently holds 100 reams in inventory of which it bought at £15 per ream last year. These will have a resale value of £10 per ream.
The current market price of the paper is £26 per ream.
What is the relevant cost of the paper that the department should consider if it decides to print the brochures?