Read the instructions carefully. Your job is to complete BE7.4 on the third image. You're using BE7.3 and BE7.4 as a guide to answer BE7.4 on the THIRD image. Everything SHOULD be the SAME except for the numbers.

*Brief Exercise 7.4 Waterloo Co. sells product P-14 at a price of $49 a unit. The per-unit cost data are direct materials $16, direct labour $11, and overhead $12 (75% variable). Waterloo has no excess capacity to accept a special order for 39,600 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Waterloo would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ V Waterloo Co. the special order. n.....:.. Au___n._. n -e a ..__J BE7.3 (M) Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overheads $12 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 40,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Waterloo Co. should accept the special order. Determine whether to accept special order. BE7.4 (L0 2) Assume the same information as in BE7.3, except that Waterloo has no excess capacity. Indicate the net income (loss) that Waterloo would realize by accepting the special order. Determine whether to accept special order. BRIEF EXERCISE 7.4 Incremental revenue (40,000 units x $36 $1,440,000 per unit) Incremental cost: Variable cost (40,000 units x $34 per $1,360,000 unit) Selling cost (40,000 units x $3 per unit) 120,000 Opportunity cost [40,000 X ($48 - $34)] 560,000 2,040,000 Incremental income (loss) $(600,0002 The special order should not be accepted without any extra capacity because the company would lose $600,000