UESTION 1 Astra Controls Ltd, an electronic engineering business= that specialises in the production of electronic surveillance equipment for security forces throughout the world. Recently= it has received a request to produce 10 \"Peeping Tom' surveillance units for a foreign government. The Peeping Tom was developed some time ago by the business at a total research and development cost of 220,000. So far there has been no interest shown in the equipment and no units have been produced. The present order seems likely to represent the total sales for the Peeping Tom. The product specication for each unit is set out below: 1 Materials (a) ComponentA 3 per unit Component B 1 per unit Component C 2 per unit (b) Component A is normally held in inventories as it is widely used throughout the business's product range. There are 15 components currently in inventories. These had cost 1,800 each. The sole supplier of this component has announced an immediate price rise of 5% for further purchases. (c) Component B is no longer used for any other of the business's products. At present the business holds six components that had cost 2,000 each. It is possible to buy additional components at a cost of 2=200 each; however, the supplier insists on a minimum order quantity of six. components. Any components that are not used on this contract will be disposed of at a total cost to the business of 250= irrespective of the quantity to be disposed of