A company has been making a machine to order for a customer, but the customer has now gone into liquidation. Costs incurred to date are $50,000 and progress payments of $15,000have been received from the customer prior to liquidation.

Another company is willing to buy the machine for $34,000 once it is finished.

Costs to complete the machine are as follows:
1.
Materials – these have already been purchased for $6,000. There is no other use for these materials and if not used for the machine they will be sold for $2,000
2.
Further labour costs will be $8,000. Labour is in short supply and if not used for this job the work force would be switched to another job which would earn a contribution of $18,000
3.
Consultancy fees of $4,000. If the work is not completed the contract with the consultant can be cancelled at a cost of $1,500
4.
General overheads of $8000 would be added to the cost of the additional work.



Should the new customer’s offer be accepted?




答案：
Extra Revenue                                                           34000


materials                                 2000
labour(8000+18000)             26000
consultant(4000-1500)           2500
general overhead                       -
                                                                                 30500
                                                                                  3500


答案有些看不懂。
而且最后这样的结果，是接受还是不接受呢？