A research contract, which to date has cost the company $150,000, is under review. If the contract is allowed to proceed: it will be completed in approximately one year the results would then be sold to a government agency for $300,000. Shown below are the additional expenses which the managing director estimates will be necessary to complete the work. Materials This material for the contract has just been purchased at a cost of $60,000. It is toxic; if not used in this contract it must be disposed of at a cost of $5,000