Required: Calculate the minimum acceptable price for this limited-edition item. Explain if you should accept this contract or not.

Vipac enterprises has the opportunity to produce a limited-edition item. The contract is for 1000 identical items and the company will pay $300 per unit. The information is as follows: Units in Stock Units Needed Historic price Sales price Replacement value per unit per unit per unit 20 5.00 Material J 100 3.50 6.00 Material K 10 15 6.50 5.00 7.50 Material M 0 30 0 2.50 Material J is in regular business use. Material K is a once off purchase that was made for a previous contract and will not be used again. Labour needed for this project: We will need to contract a special labour in for this project at $9 a unit The project manager receives a usual salary of 3500$ per month. She can be used on this project as the organization currently has spare capacity Other monthly costs pertaining to the project: Rent for Vipac Enterprises 30,000$ 2000$ Electricity Machinery (bought 6 months ago) 20000$ Depreciation 555$ Required: Calculate the minimum acceptable price for this limited-edition item. Explain if you should accept this contract or not