Litton Co has been asked to tender for a one-off contract to build a machine. The costs involved are detailed below.

Material A is in inventory. It cost $5,000 originally, and it is used continually by the company. The current purchase price is $6,500.

Material B is in inventory. This was left over from another job, and is unlikely to be used otherwise. It originally cost $2,800, it can currently be bought for $3,000, and could be sold, net of delivery costs, for $2,600.

Skilled labour is in short supply and would have to be diverted from other production, with an estimated loss of contribution of $7,300. The direct cost of the 500 hours skilled labour needed for the contract would be $4,900.

Unskilled labour is plentiful, and the 300 hours needed could be found without affecting other production due to spare capacity. Unskilled labour costs are $4 per hour and all workers are paid for a 40 hour week.

The overhead absorption rate is $2 per labour hour. No additional overheads would be incurred as a result of accepting this contract.

What is the minimum price that Litton Co should quote for this contract?