Alice Engineering manufactures small engines. The engines are sold to manufacturers who install them in such products as lawn mowers. Its manufacturing plant has the capacity to produce 9000 engines each month. Current production and sales capacity is 80 per cent. The normal selling price of an engine is $134. Alice engineering has just received a special one- time only order for 1800 engines at $122 per engine. Alice Engineering makes engines for its existing customers in batch sizes of 100 engines (72 batches x 100 engines per batch = 7200 engines). The special order requires Alice engineering to make the engines in 18 batches of 100 each. Cost information for current activity level is as follows: Variable costs that vary with number of units produced -Direct materials $332,000 -Direct labour 450,000 Variable costs that vary with number of batches 72 batches x $112 per batch 8,064 Fixed costs - Fixed manufacturing costs 456,000 - Fixed marketing costs 225,125 Total costs $1,471,189