3 {a} Assembly time is estimated at 10 hours for each Peeping Tom unit. The workforce required to assemble the product is paid 7.00 an hour and is in great demand. If the order is accepted, the necessary labour will have to be transferred from existing work and, as a result, other orders will be lost. It is estimated that for each hour that labour is transferred to this product 50.00 of sales revenue will be lost but that savings of 15.00 an hour in materials relating to lost sales will be made. (b) Inspection time is estimated at five hours for each Peeping Tom unit. Inspection labour can be provided by paying existing employees overtime which is paid at a 331.93% premium over the standard rate of 6.00 an hour. Overheads The business normally includes a mark-up of 30% to cover overheads. This contract is not expected to give rise to any increases in overheads