A firm has received an order from customer X to be executed for RO1,800 ( all inclusive). The order requires the following materials, labour etc.

Materials	Requirements	In stock	Book value	Replacement cost per kg	Realizable value per kg
A	100kg	50kg	RO 250	RO 7	RO 3
B	300kg	140kg	RO 280	RO 3	RO 1

Labour:

Department I : 10 hrs @ RO15

Department II : 8 hrs @ RO12

Variable Overhead : RO 150

Material A is regularly used by the firm and if used on this order has to be replaced for the use of other orders.

Material B has no use and is the result of excessive purchase made for an order executed two years ago.

Labour in department I is available for this order but labour in department II is fully engaged on another order which is earning a contribution of RO 20 per hour and if the order from X is to be executed, labour in department II has to be diverted from current operations. State whether the order received from customer X has to accepted.