Storage $($Pty$)$ Ltd $($Storage$),$ is a manufacturer of storage boxes. Storage received a special order for which the entity needs to determine the minimum price.

Additional information

$1100$ kgs of material X is required for this order. There is currently $100$ kgs of material X in stock $($purchased at R$7$ per kg$).$ Material X is used regularly by Storage and the current purchase price is R$10$ per kg$.$

$300$ kgs of material Y is required for this order and there is just enough in stock $($purchased at R$5$ per kg$).$ Material Y has no foreseeable use in the business and if not used for this order it will be disposed of at a total cost of R$700.$

$$ Machinery required to complete this order will be reaching the end of its useful life and needs to be replaced at a cost of R$20000.$ Storage uses this machinery in all their production processes. The expected useful life thereafter is $10$ years.

$$ Fixed overheads are normally R$6$ per unit but are expected to increase to R$8$ per unit for this order.

$$ The special order is for $600$ units and will take $3$ months to complete. REQUIRED:

Determine the minimum price for the special order. Should you wish to intentionally include or omit a figure from the workings, provide a brief motivation for this decision.