QUESTION 2 1|.iloice Ltd produces sound equipment for conference and teaching venues. Recently, it has received a request to install a new sound system in the Peacock Theatre. The job will have the following material requirements: Component A: 3-D units Component B: 10 units Component C: 20 units Additional inlonnation: 1. Component A is normally held in inventories as it is widely used throughout the business's product range. There are 15 components currently held. These had cost $31,801:) each. The sole supplier of this component has announced an immediate price rise of 5% lorturther purchases. 2. Component B is no longer used for any other of the business's products. At present there are six components in inventories costing 2,000 each. It is possible to buy additional components at a cost of 2,20 each; however, the supplier insists on a minimum order quantity of six components. Any unused components will be disposed of at a total cost to the business of 250, irrespective of the quantity to be disposed of. 3. Component C is used by the business throughout its product range. At present there is none in inventories. However, an order lor 20 components for use in another contract is about to be placed. The supplier normally charges 1,600 per component but for orders above 30 components a discount of 10% is available on the total order price