Portstewart Boat builders Ltd has been asked to refit a boat for a customer; Skilled labour costing £8 per hour will be required for the refit. The workers will have to be taken off the production of canoes for resale for a total of 240 hours. The canoes are sold for£200 each and take 12 hours of skilled labour. The material cost of each canoe is £60.

What is the relevant cost of labour when assessing the viability of the refit contract?

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