Andrews and Co. Ltd has been invited to tender for a contract. It is to produce 10.000 metres of an electrical cable in which the business specialises. The estimating department of the business has produced the following information relating to the contract: Materials: The cable will require a steel core, which the business buys in. The steel core is to be coated with a special plastic, also bought in, using a special process. Plastic for the covering will be required at the rate of 0.10 kg/metre of completed cable. Direct labour. o Skilled: 10 minutes/metre o Unskilled: 5 minutes/metre The business already holds sufficient of each of the materials required to complete the contract. Information on the cost of the inventories is as follows: Steel core /metre Plastic /kg 2.20 0.60 Historic cost Current buying cost Scrab value 4.30 0.70 0.50 1.40 Labour Costs/ Minutes per metre hour Skilled workers Unskilled workers i The steel core is in constant use by the business for a variety of work that it regularly undertakes. The plastic is a surplus from a previous contract where a mistake was made and an excess quantity ordered. If the current contract does not go ahead, this plastic will be scrapped (zero proceeds). Unskilled labour, which is paid at the rate of 7.50 an hour, will need to be taken on specifically to undertake the contract. The business is fairly busy at the moment. Required: Indicate the minimum price at which the contract could be undertaken such that the business would be neither better nor worse off as a result of doing it