Mars Ltd is a manufacturer of various types of furniture units. Recently one of its large
customers, Zebra Ltd has offered a contract to Mars Ltd for the supply of 700 units. Below are
the details for the production of each unit: Material requirements: 6kg of Material A4kg of
Material B Note 1: Currently 1,200 kg of Material A is held by the business and it is regularly
used by the business. This material of was originally bought for 6 per kg. It would cost 12 per kg
to replace it. Sales value is 11 per kg. Note 2: Currently 1,700 kg of Material B is held by the
business. This material was originally bought for 24 per kg. The material is not currently used by
the business and its scrap value is 9 per kg. The only foreseeable alternative use is as a substitute
for material D (in constant use) but this would involve further processing cost of 5 per kg. The
current buying cost of material D is 16 per kg. Replacement cost for material B is 18 per kg.
Skilled labour: Each unit requires 5 hours of skilled labour. It is currently paid at a rate of 18 an
hour and skilled labour is hired on a permanent basis. 1,700 hours can be provided by members
of staff who currently have no work to do due to a quiet time. Only taking staff off other work
can provide the remaining hours needed for this new project. This other work is charged out to
customers at 70 an hour. Semi-skilled labour: Each unit requires 8 hours of semi-skilled labour.
It is currently paid 99 per hour. If the required semi-skilled labour for this project is provided by
the existing members of staff who are busy, the business will have to hire new employees at a
rate of 14 per hour. Overheads: It is Mars's policy to charge a share of the general costs (rent,
heating and so on) to each contract undertaken at the rate of 5 for each skilled labour hour used
on the contract. If this project is undertaken, the general costs are expected increase by 3,300 as a
result of undertaking the contract. Required Calculate the minimum price at which the contract
could be undertaken by Mars Ltd. For each part. you should clearly show supporting workings
and provide a brief explanation for your choice.(Total: 18 marks).
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Moving to another question will save this response. Question 2 uestio.pdf
1. Moving to another question will save this response. Question 2 uestion 2 1 points Oft-balance-
sheet acthates are: A. contingent events which move the asset or llability from the balance sheet
to of balance sheet. B. not ahown on the current balance sheet C. not shown on the current
balance sheet but are an ce-salarse.sheet assetilablity, It when a contingent event cecurs, the
activhy moves onto the assebliatility side of the balance sheet D. not shown on the balance sheet
bus ather the completicn of the financial year are recorded on the balance sheen
