A garage has an old car that it bought several months ago for £3,000. The car needs a replacement engine before it can be sold. It is possible to buy a reconditioned engine for £300. This would take seven hours to fit by a mechanic who is paid £12 an hour. At present, the garage is short of work, but the owners are reluctant to lay off any mechanics or even cut down their basic working week because skilled labour is difficult to find and an upturn in repair work is expected soon.

Without the engine, the car could be sold for an estimated £3,500. What is the minimum price at which the garage should sell the car, with a reconditioned engine fitted, to avoid making a loss? (Ignore any timing differences in receipts and payments.)