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Work Hard Company has been offered a special contract. The contract requires 100 hours of labour However, the labourers who are each paid NS36 per
Work Hard Company has been offered a special contract. The contract requires 100 hours of labour However, the labourers who are each paid NS36 per hour, are working at full capacity There is a shortage of labour in the market. The labour required to undertake this special contract would have to be taken from another contract, Z, which currently utilises 1000 hours of labour and generates N$10,000 worth of contribution. If the labour was taken from contract Z, then the whole of contract Z would have to be delayed and such falay would invoke a penalty fee of N$2,000. What is the relevant cost of labour for the special contract
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