Tucker is a manufacturer of various types of electric units. Recently one of its large customers, Shaker's has offered a contract to Tucker for the supply of 820 units. Below are the details for the production of each unit: Material X: 4 kg is required per unit. Currently 3,000 kg is held by the business and it is constantly used. This material of was originally bought for 54 per kg. It would cost 65 per kg to replace it. Sales value is 60 per kg. Material Y: 6 kg is required per unit. Currently 3,800 kg is held by the business. This material of was originally bought for 31 per kg. The material was not used by the business for last two years. Its scrap value is only 11 per kg. Replacement cost for material Y is 27 per kg. The only foreseeable alternative use is as a substitute for material K (in constant use) but this would involve further processing cost of 6 per kg. The current buying cost of material K is 18 per kg. Material Z: 3 kg is required per unit. It is regularly used by the business and currently there is none available in the business. An order for 1,500 kg is shortly to be placed for another project by the business. The price for this material is 65 per kg, but the supplier allows a bulk discount of 10%, for the entire order, for orders of 3,500 kg and above. Skilled labour: Each unit requires 5 hours of skilled labour. It is currently paid at a rate of 37 per hr and skilled labour is hired on a permanent basis. 1,400 hours can be provided by members of staff who currently have no work to do due to a quiet time, but still employed by the company. Only taking staff off other work can provide the remaining hours needed for this new project. This other work is charged out to customers at 85 an hour and material cost is 25 per hour. Semi-skilled labour: Each unit requires 3 hours of semi-skilled labour. It is currently paid 13 per hour. If the required semi-skilled labour for this project is provided by the existing members of staff who are busy, the business will have to hire new employees at a rate of 17 per hour. Specialised study: To derive the above estimates, the business had to spend 6,200 on a specialised study. If the contract does not proceed, the results of the study can be sold for 7,100 in the market. Overheads: It is Tuckers policy to charge a share of the general costs (rent, heating and so on) to each contract undertaken at the rate of 12 for each skilled labour hour used on the contract. If this project is undertaken, the general costs are expected to increase as a result of undertaking the contract by 4,300.

1. Calculate the minimum price at which the contract could be undertaken by Tucker's.