... a particular decision (Dyson, 2001, p.374), and ensure only those costs that are relevant to a decision are taken into account when establishing the minimum bid price. 4.3 Relevant costs, which are costs and revenues unaffected by this decision making process (e.g. fixed overheads) are excluded from this analysis because they will be incurred regardless of whether or not this contract is undertaken. 4.4 It is assumed that the financial year (FY) runs from 1 July - 30 June. 4.5 It is anticipated that the dearth of skilled labour will end before the start of year 2 following completion of the extensive training programme, thus eradicating the opportunity cost, this being the current contribution of £52 per hour net of labour costs. 4.6 Skilled and unskilled labour is not interchangeable. 4.7 Machine 1, though not working to full capacity, is not capable of producing two reducers per year, and therefore the purchase of ...

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