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A company has been requested to complete a one off project for a price of...

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Accounting

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A company has been requested to complete a one off project for a price of 18,000. The job would require the following materials: The company uses material B regularly and if units of B are required for the job, they would need to be replaced to meet other production demand. Materials C and D are in stock as the result of previous overbuying and no other use could be found for material C. Material D could be used in another job as a substitute for 300 units of material E that currently costs 5 per unit (of which the company has no units in stock). (1) What are the relevant costs of material in deciding whether or not to accept the contact? (10 marks) (2) Should the contract be accepted

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