ThemanagementofCroesusLtd.isconcernedaboutincreasinglabourturnoveratthecompanysfactoryandwantstodeterminetheprofitforegonebecauseoflabourturnoverlastyear.AcostanalystatCroesushasestablishedthefollowing:

1.LastyearstotalsalesamountedtoR8600000,andthelossofcontributionisapproximately20%oflostsalesasaresultoflabourturnover.

2.ThetotalnumberofactualhoursworkedbythedirectLabourforcewas450000hours.Theactualdirectlabourhoursincluded30000hoursattributabletotrainingnewrecruits,outofwhich,two-thirdsofthehourswereunproductive.

3.Asaresultofthedelaysbythehumanresourcesdepartmentinfillingvacanciesduetolabourturnover,100000productivehourswerelost.

Thesubsequentcostincurredonlabourturnoverrevealed,onanalysis,thefollowing:

	R
Settlementcostduetoleaving:	43800
Recruitmentcosts	28000
Selectioncosts:	12750
Trainingcosts	35450

Required:

Ifthelostproductionbecauseoflabourturnovercouldhavebeenavertedatprevailingprices,findtheprofitforegonelastyearonaccountoflabourturnover.