PRACTICE PROBLEM Walston Company produces kitchen cabinets for homebuilders across the western United States. The cost of producing 5,000 cabinets is as follows. Materials $ 500,000 Labor 250,000 Variable overhead 100.000 Fixed overhead 400,000 Total $1,250,000 Use inc for a spec (402) Walston also incurs selling expenses of $20 per cabinet. Wellington Corp. has offered Walston $165 per cabinet for a special order of 1,000 cabinets. The cabinets would be sold to homebuilders in the eastern United States and thus would not conflict with Walston's current sales. Selling expenses per cabinet would be only $5 per cabinet. Walston has avail- able capacity to do the work. INSTRUCTIONS (a) Prepare an incremental analysis for the special order. (b) Should Walston accept the special order? Why or why not? COLLITION e here to search a