Zimglass Industries Ltd. has been approached by a customer who would like a special job to be done for him, and is willing to pay $60,000 for it. The job would require the following materials. Material Total units required A 1000 B 1000 C 1000 D 200 Units already Book value of units Realisable value Replacement cost in stock in stock $/unit $/unit $/unit 10 16.00 600 12.00 12.50 15.00 700 13.00 12.50 14.00 200 14.00 16.00 19.00 a) Material B is used regularly by Zimglass Industries Ltd, and if units of B are required for this job, they would need to be replaced to meet other production demands. b) Materials C and D are in stock due to previous over-buying, and they have restricted use. No other use could be found for material C, but the units of material D could be used in another job as a substitute for 300 units of material E, which currently costs $15 per unit (of which the company has no units in stock at the moment). Calculate the relevant costs of material for deciding whether or not to accept the contract. You must carefully and clearly explain the reasons for your treatment of each material