Answer all parts. Bimbo Ltd. is involved in the design and manufacture of cat cages. The company has just received an enquiry about the possibility of supplying 120 cages to a cat shelter, situated on the outskirts of Dublin. The management accountant of Bimbo Ltd has provided you with the following details relating to the costs involved in the construction of the cages. - Each cage will require six planks of timber. The company has 200 planks of timber in stock, and if they are not used in the manufacture of the cages, they will be disposed of immediately, at a cost of 5 per plank. The original purchase price for the planks in stock was 40 per plank and the replacement cost is 55 per plank. - Each cage will also require five strips of reinforced plastic, which is frequently used by Bimbo Ltd The company holds 125 strips of this plastic in the warehouse at present. These strips of plastic cost 112 each three months ago, and their replacement cost is 120 per strip. - Also, each cage will require three steel bars, which are sold in batches of 6 bars. The purchase price of a batch of steel bars is 720. The supplier has agreed to offer a discount of 4% on the purchase price of the first thirty batches purchased, and a 6% discount on purchases over thirty batches. - The construction of the cages will require a combination of skilled and unskilled labour. Each cage will require 3 skilled labour hours, and 2 unskilled labour hours. The skilled labourers are paid 50 per hour and the unskilled labourers are paid 40% of the skilled hourly rate. If this contract does not go ahead, there will be 65 unskilled idle hours, and the company is reluctant to make redundancies. - The project will require a project manager to oversee the work. Bimbo Ltd currently employs a manager with this required experience. This manager currently earns 70,000 but has agreed to take a 5% salary decrease because this position is not as onerous as his existing one. The manager will be replaced in his usual role by a less experienced manager who will earn E55,000. - Variable overheads are absorbed at a rate of 35 per skilled labour hour. - Bimbo Ltd.'s current total fixed overhead costs for the year are 116,000. If the cat shelter accepts its quote, then it will represent 10% of its client base. Therefore, Bimbo Ltd. proposes to allocate fixed overheads of 11,600(116,00010%) to the job. - The machinery and tools used by Bimbo Ltd.to manufacture the cat cages will depreciate by 2,150 over the duration of the contract. - Bimbo Ltd. includes a mark-up of 15% on costs, to determine it's selling price. Required: (a) Using relevant costing principles, determine the selling price that Bimbo Ltd. will charge the cat shelter for each cage. Your answer must include an explanation for the inclusion or exclusion of each of the above points. (b) Explain the importance of considering both quantitative and qualitative factors before making a final decision