Full explaination with formulas

Crispy Ltd is considering whether to supply its products - a special CD branded Protect It All to the University of Technology. The contract is for one academic year and the details are as follows: Material: Rs X (in stock) 150,000 Yon order - on contract) 180,000 z (to be ordered) 300,000 Labour: Skilled 540,000 Unskilled 200,000 Supervisory 100,000 General overheads (200% of skilled labour) 1,080,000 Total cost Contract price 2,550,000 2,300,000 Net Loss 250,000 The following additional information is available: (a) Material X is an obsolete material and can only be used on another product, the material for which would cost Rs 135,000; material X requires some adaptation to be used and would cost Rs 27,000. (b) Material Y is ordered for some other product which is no longer required. It now has a residual value of Rs 210,000. (c) Skilled labour can work on other contracts, which are presently operated by semi-skilled at a cost of Rs 570,000. (d) Unskilled labour are specifically employed for this contract. (e) Supervisory staff will remain whether or not the contract is accepted. (f) Overheads are charged at 200% of skilled labour. Only Rs 125,000 would be avoidable if the contract is not accepted. REQUIRED: a) Calculate the minimum contract price that Crispy Ltd could accept to breakeven using relevant costing principles. (15 marks)