Part 2 Baby Center Ltd. has been approached by the government. which is seeking to buy 12,000 high chairs for its day care centers in 2013. The proposed government contract states that the government would pay Baby Center a price of $36 per high chair. If Baby Center decides to accept this special order, they would avoid packaging costs for this contract as well as all variable selling and administrative costs. The company's capacity is limited to only 40,000 units. If they accept the govemment contract, they will need to increase their capacity by renting an additional machine. Refer to page 1 for the company's estimated cost data and additional machine rental cost. Assume that Baby Center does not adopt the proposed Marketing Plan and that the company's production and sales level without the government contract is expected to be 30,000 high chairs for 2018. 1. Prepare an analysis below to determine the incremental net income or net loss that Baby Center would recognize it they accept this special order. 2. Should Baby Center accept or reject the government contract