Example 1: A company has been making a machine to order for a customer, but the customer has since gone into liquidation, and there is no prospect that any money will be obtained from the winding up of the company. Cost incurred to date in manufacturing the machine are Rs. 50000 and progress payments of 15000 have been received from the customer prior to the liquidation. The sales department has found another company willing to buy the machine for * 34000 once it has been completed. To complete the work, the following costs would be incurred:- Materials-these have been bought at a cost of . 6000. They have no other use, and if the machine is not finished, they would be sold as scarp for 2000. Further labour costs would be Rs. 8000. Labour is in short supply, and if the machine is not finished, the work force would be switched to another job, which would earn 30000 in revenue, and incur direct costs (not including direct labour) of 7. 12000 and absorbed fixed overhead of 10000. Consultancy fees, 4000. If the work is not completed, the consultant's contract would be cancelled at a cost of 1500. General overheads of Rs. 8000 would be added to the cost of the additional work. Should the new customer's offer be accepted