Blue Spruce Ltd$.$ incurs the following costs to make each custom made shelf: materials of $$12$labour of $$17$variable overhnad of $$4.$ and fixed overhead of $$4.$ Each shelf normally sells for $$53.$ A customer is offering to buy $2,000$ units at $$39$ each. Blue Spruce will incur additional costs of $$1$ per shelf to imprint a logo and to pay for shipping.

$($a$)$ Prepare an incremental analysis for the special order.

Revenues

Costs

Net Income$/($loss$)$

Reject Order

$($b$)$ Should Blue Spruce accept the special urder?

Accept Order

Incremental Revenue and Costs