Problem 4.44 Chris Whitecrow operates a small machine shop. He manufactures one standard product that is available from many other similar businesses, and he also manufectures custom-ordered products. His accountant prepared the following annual income statement Custom Standard Sales Sales Total Sales $49,680 $ 23,910 $73,590 Casts Material 10,900 7.800 18,700 Labour 18,000 B.300 26,300 Aartization 6,900 3,400 10,300 Pawer 800 400 1,200 Plent 5,800 1,100 6,900 110 690 Other 1,000 1,300 Total costs 43,280 22,110 G5,390 Incorre $ 6,400 $ 1,800 18,200 Heat and Link to Text 3 The amortization charges are for machines used in the respective product lines. The power charge is appartioned based on an estimate of power consumed. The rent is for the building space, which has been leased for 10 years at $6,900 per year. The rent and the heat and lighting are apportioned to the product lines, based on the amount of floor space Docupied. All other casts are current expenses identified with the product line causing them. A valued custom parts customer has asked Chris if he would manufacture 5,000 special units for her. Chris 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-hair for a year while producing the specially requested customer part. The customer is willing to pay $6.51 for each part. The material cost will be about $2 per unit, and the labour will be $3.30 per unit. Chris will have to spend $1,800 for a special device that will be discarded when the job is done. Your answer is correct. Calculate and present the following costs related to the 5,000-unit custorn order: 1. The incremental cost of the order 28300 28905 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 3205 LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Should Chris take the order? 1545 The firm will be approximately $ better off by accepting the order. LINK TO TEXT LINK TO TEXT LINK TO TEXT