Henry Whiteorow operates a small machine shop. He manufactures one standard product that is available from many other similar businesses, and he also manufactures custom-ordered products. His accountant prepared the following annual income statement. Custom Standard Sales Sales Total 551,660 $ 25,910 $77,570 Sales Costs Material Labour Amortization Power Rent Heat and light Other Total costs Income 10,000 8,000 18,000 21,800 9,400 31,200 6,400 3,900 10,300 600 400 1,000 5,600 1,100 6,700 560 110 670 400 900 1,300 45,360 23,810 69,170 S 5,300 $ 2,100 $ 8,400 The amortization charges are for machines used in the respective product lines. The power charge is apportioned based on an estimate of power consumed. The rent is for the building space, which has been leased for 10 years at $6,700 per year. The rent and the heat and lighting are apportioned to the product lines, based on the amount of floor space occupied. All other costs are current expenses identified with the product line causing them. A valued custom-parts customer has asked Henry if he would manufacture 5,000 special units for her. Henry is working at capacity and would have to give up some other business to take this order. He cannot renege on custom orders already agreed to, but he would have to reduce the output of his standard product by about one-half for a year while producing the specially requested customer part. The customer is willing to pay $7.29 for each part. The material cost will be about $2 per unit, and the labour will be $3.80 per unit. Henry will have to spend $2,200 for a special device that will be discarded when the job is done. x Your answer is incorrect. Try again. Calculate and present the following costs related to the 5,000-unit custom order: 1. The incremental cost of the order 2. The full cost of the order (Incremental plus allocated fixed costs, such as amortization, rent, etc.) 3. The opportunity cost of taking the order 7610 Your answer is partially correct. Try again. Should Henry take the order? The firm will be approximately better off by accepting the order