CRYST A company is considering whether to accept a one-off contract, The customer is offering a price of $3.900.000 to provide cocing services. The production manager has indicated to management that the total cost will inchide direct materie de cabos direct expenses and sodatie overheads. Management's policy is to apply a mark up of 355, to al contract. The following intomation relevant to the special contract: The contract requires 20.000 ograms of grade Atopsoil: Currently the company has 10.000 kilograms of Grade toma prior contract. The soil cost $65 per klogram when it was bought last year. A customer in tucna has offered to buy the center Grade Asolo $70 per dogram, provided it is transported to the customer, The cost of transporting it to Lucea is $10,000, however, we decided to use the material in the contract. The con purchase price hogram of the Grade A solis $80. The contract cho requires 1000 exotic plants. The current and prices but plants recurrentlythere bought year at $450 per kilogram. However, it was determined that these plants were infected by as and would treatment at a cost of $2.000. Management we offered $400 per piont, as it without the fungot on how to utiho in the contract. w the one of contract requires 50 bag of fertiler. We bought to bogs four months ago toda 53600 pertos that project was conceded. The bogs of former can be sold to a competitor forse. The or purchaebo Md woord wat odved that 190 house med at $10 per hour the requires 50 bags of fertilizer. We bought 40 bags four months ago to use on another project at a price of $3600 per bag, that project was cancelled. The bags of fertilizer can be sold to a competitor for $3800. The curent purchase price per bog is $4.100 fiv) Skilled workers are required. It was advised that 190 hours are required at $370 per hour. These workers will be employed specifically for this contract IM Unskilled workers are currently paid a rate of $240 per hour. W employs 10 urskilled workers to work hours per day for five dans per week. The contract is expected to last seven weeks. However, they are currently employed by the company where they are coming a contribution for the company at $260 per hour. For this project the company will need 4 of the skilled workers ii) The entity has fixed cost of $900.000 that is to be charged to the contract. Furthet analysis indicated that your of the feed card continue whether or not the contract is accepted. Required: (aAdvise management on the feasibility of the contract after preparing a cost and prostatement based on the (20 marks) CRYST A company is considering whether to accept a one-off contract, The customer is offering a price of $3.900.000 to provide cocing services. The production manager has indicated to management that the total cost will inchide direct materie de cabos direct expenses and sodatie overheads. Management's policy is to apply a mark up of 355, to al contract. The following intomation relevant to the special contract: The contract requires 20.000 ograms of grade Atopsoil: Currently the company has 10.000 kilograms of Grade toma prior contract. The soil cost $65 per klogram when it was bought last year. A customer in tucna has offered to buy the center Grade Asolo $70 per dogram, provided it is transported to the customer, The cost of transporting it to Lucea is $10,000, however, we decided to use the material in the contract. The con purchase price hogram of the Grade A solis $80. The contract cho requires 1000 exotic plants. The current and prices but plants recurrentlythere bought year at $450 per kilogram. However, it was determined that these plants were infected by as and would treatment at a cost of $2.000. Management we offered $400 per piont, as it without the fungot on how to utiho in the contract. w the one of contract requires 50 bag of fertiler. We bought to bogs four months ago toda 53600 pertos that project was conceded. The bogs of former can be sold to a competitor forse. The or purchaebo Md woord wat odved that 190 house med at $10 per hour the requires 50 bags of fertilizer. We bought 40 bags four months ago to use on another project at a price of $3600 per bag, that project was cancelled. The bags of fertilizer can be sold to a competitor for $3800. The curent purchase price per bog is $4.100 fiv) Skilled workers are required. It was advised that 190 hours are required at $370 per hour. These workers will be employed specifically for this contract IM Unskilled workers are currently paid a rate of $240 per hour. W employs 10 urskilled workers to work hours per day for five dans per week. The contract is expected to last seven weeks. However, they are currently employed by the company where they are coming a contribution for the company at $260 per hour. For this project the company will need 4 of the skilled workers ii) The entity has fixed cost of $900.000 that is to be charged to the contract. Furthet analysis indicated that your of the feed card continue whether or not the contract is accepted. Required: (aAdvise management on the feasibility of the contract after preparing a cost and prostatement based on the (20 marks)