I am having trouble on Exercise #17

ER 1 Managerial Accounting in the Information Age Ken estimates that if his company stays open on Saturday, it can generate $2,500 of daily revenue each day for 52 days per year. The incremental daily costs will be $700 for labor, $500 for parts, $100 for transportation, and $200 for office staff. These costs do not include a share of monthly rent or a share of depreciation related to office equipment. Ken is determined not to have employees work on Sunday, but he would like to know the opportunity cost of not working on Saturday. Provide Ken with an estimate of the opportunity cost, and explain why you do not have to consider rent or depreciation of office equipment in your estimate. EXERCISE 1.15. Opportunity Cost [L?2] Zachary made plans to visit a friend in New York during the Memorial Day weekend. However, before the trip, his employer asked him if he would work overtime for 16 hours at $35 per hour during the weekend. What will be the opportunity cost if Zachary decides to visit his friend in New York? EXERCISE 1-16. Incremental Analysis [LO 2, 31 Wilmington Chemicals produces a chemical. PX44, which is used to retard fading in exterior house paint. In the past year, the company pro- duced 200,000 gallons at a total cost of $1,200,000 ($6 per gallon). The company is currently con- sidering an order for 15,000 gallons from a paint company in Canada. (To date, Wilmington has not sold the product in markets outside the United States.) Explain why the incremental cost associated with this order is likely to be less than $90,000. EXERCISE 1-17. Incremental Analysis [LO 31 In the past year, wlliams Mold & Machine had sales of $7,000,000 and total production costs of $5,000,000. In the coming year,t P believes that sales and production can be increased by 25 percent, but this will require ess s 1? second production shift to work from 4:00 RM, to 1:00 AM REQUIRED a. Indicate three production costs that are likely to increase because of the addition of a seconu production shift. b. Suggest a production cost that most likely will not increase when the second shift is added. EXERCISE 1-18. You Get What You M