Calculate the following:

-Opportunity cost of taking the order

-The cash advantage (disadvantage) if Jackson accepts the order

[Fact Pattern #2] 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: Custom Standard Sales Sales Total Sales $50,000 $25,000 $75,000 Materials $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 400 900 1,300 Total costs $44,000 $23,000 $67,000 Operating income $ 6,000 $ 2,000 $ 8,000 The depreciation charges are for machines used in the respective product lines. The power charge is apportioned on the estimate of power consumed. The rent is for the building space, which has been leased for 10 years at $7,000 per year. The rent and heat and light are apportioned to the product lines based on amount of floor space occupied. All other costs are current expenses identified with the product line incurring them. A valued custom parts customer has asked Mr. Jackson to manufacture 5,000 special units for him. Mr. Jackson is working at capacity and would have to give up some other business to take this business. He cannot renege on custom orders already agreed to, but he could reduce the output of his standard product by about one-half for one year while producing the specially requested custom part. The customer is willing to pay $7 for each part. The materials cost will be about $2 per unit, and the labor will be $3.60 per unit. Mr. Jackson will have to spend $2,000 for a special device that will be discarded when the job is done