Andrew Tersigni owns a successful bagel shop and is considering leasing the space next door at $1,000 per month and adding additional tables and chairs in the leased space to allow his customers to dine in. He estimates the additional tables and chairs will cost about $5,000. The bagel machine that cost $4,500 five years ago will need to be replaced in favour of a larger machine that will cost $7,400. He believes this proposal will increase sales each month by $5,500. His variable costs are approximately 55% of his sales. Required: a) What are the relevant costs and benefits of expanding into the new space? b) What are the irrelevant costs and benefits of expanding into the new space?