For most construction projects, Pembina Heating and Cooling buys sheet metal and forms the metal into heating/cooling ducts as needed. The company estimates the costs of making and installing ductwork for the Kerry Park shopping mall to be as follows:

Materials $34,720

Labor to form ductwork 3,920

Labor to install ductwork 10,030

Miscellaneous variable costs 1,630

Fixed costs allocated based on labor hours 2,940

Total cost$53,240

The fixed costs relate to the company's building, equipment, and office staff. The company plans to bill the Kerry Park developer $68,000 for services. Pembina is currently behind schedule on other projects and is paying a late penalty of $1,092 per day. Walt Bradley, the owner of Pembina Heating and Cooling, is considering ordering prefabricated ductwork for the Kerry Park job. The prefabricated ductwork will cost $41,470 (including the cost of sheet metal). If Walt buys the prefabricated ductwork, he'll be able to reassign workers to another project and avoid five days of late fees.

Should Pembina make the ductwork or buy it prefabricated?

Net incremental: (COST OR BENEFIT CHOOSE ONE) of buying will be $___________(FILL IN ANSWER) . Pembina should (BUY OR MAKE CHOOSE ONE) the prefabricated ductwork.