Assess whether the new customers offer should be accepted, giving reasons for the inclusion and exclusion of costs.Full explanation including formulas

Dell Ltd has configured a computer to order for a small firm, but the firm has since gone into liquidation, and there is no prospect that any money will be obtained from the winding up of the company. Costs incurred to date in manufacturing the computer are Rs 50,000 and progress payments of Rs 15,000 had been received from the customer prior to the liquidation. The sales department has found another client willing to buy the computer for Rs 35,000 once it has been completed. To complete the work, the following costs would be incurred: i) Materials: these have been bought at a cost of Rs 6,000. They have no other use, and if the machine is not finished, they would be sold for scrap for Rs 2,000. ii) Further labour costs would be Rs 8,000. Labour is in short supply, and if the machine is not finished, the work force would be switched to another job, which would earn Rs 3,000 in revenue, and incur direct costs of Rs 1200 and absorbed fixed overhead of Rs 8,000. iii) Consultancy fees Rs 4,000. If the work is not completed, the consultant's contract would be cancelled at a cost of Rs 1,500. iv) Specific overheads of Rs 5,000 would be added to the cost of the additional work. In addition the work would require the use of machinery which is depreciated at the rate of Rs 2,000 for each completed work