George Jackson operates a small machine shop. He manufactures one standard product available from many other similar businesses and he also manufactures products to customer order. His accountant prepared the annual income statement shown below:

{Required.}
(a)Calculate and present the following costs related to the 5,000 unit custom order:
(1) The incremental cost of the order;
(2) The full cost of the order;
(3) The opportunity cost of taking the order;
(4) The sunk cost related to the order.

(b) Should Mr. Jackson take the order? Explain your answer.

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Custom Sales Standard Sales Total Sales......... $50,000 $25,000 $75,000 Material $10,000 $ 8,000 $18,000 Labor 20,000 9,000 29,000 Depreciation .. 6,300 3,600 9,900 Power.... 700 400 1,100 Rent........ 6,000 1,000 7,000 Heat and light 600 100 700 Other................. Total Expenses. $44,000 Net Income..... $ 6,000 400 900 1,300 $23,000 $67,000 $ 2,000 $ 8,000