A company has received an enquiry from a customer for a special order that will require 1000 skilled labour hours and that will incur other variable costs of £1000. Skilled labour is currently in short supply, and if the company accepts the order then it will be necessary to reduce production of product X. Details of the cost per unit and the selling price of product X are as follows:

What is the minimum selling price the company should accept for the special order?

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() Selling price () 40 Direct labour (4 hours at 5 per hour) Other variable costs 22 20 12 32 Contribution 8