A valued custom parts customer asked Mr. Jack if he would manufacture 5,000 special units for him. Mr. Jack is working at capacity and would have to give up some other business in order to take this business. He can't renege on customer orders already agreed to, but he could reduce the output of his standard product by about one-half for one year while producing the specialty requested custom part. The customer is willing to pay $16 for each part. The material cost will be about $4.50 per unit and the labor will be $8 per unit. Mr. Jack will have to spend $4,500 for a special device that will be discarded when the job is done.

Calculate the following costs related to the 5,000-unit custom order.

What is the differential cost of the order?