A company is considering accepting a one-year contract which will require four skilled employees. The four skilled employees could be recruited on a one-year contract at a cost of $40,000 per employee. The employees would be supervised by an existing manager who earns $60,000 per annum. It is expected that supervision of the contract would take 10% of the manager's time.

Instead of recruiting new employees the company could retrain some existing employees who currently earn $30,000 per year. The training would cost $15,000 in total. If these employees were used they would need to be replaced at a total cost of $100,000.

What is the relevant labour cost of the contract?