Parker Plumbing produces and sells faucets for $6.00 each. The company currently produces and sells 7,500 faucets per year and could make as many as 10,000 faucets per year. The faucets cost $4.50 each to make; $3.00 variable cost and $1.50 fixed cost per faucet. Parker received a special one-time offer from a potential customer who wants to buy 1,500 faucets for $5.00 each. Incremental fixed costs to make this order require the purchase of a new machine at a cost of $1,000 (no salvage value). No other costs will change if this order is accepted.

If Parker accepts special order, what will the incremental sales revenue be?

If Parker accepts special order, what will incremental variable costs be?

If Parker accepts special order, what will incremental fixed costs be?

If Parker accepts special order, what will be the incremental change to income?

Specify whether Parker should accept or decline the customers order.