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ShelfIt Ltd. incurs the fol lowing costs to make each custom-made shelf: materials of $9, labour of $12, variable overhead of $4, and xed overhead

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ShelfIt Ltd. incurs the fol lowing costs to make each custom-made shelf: materials of $9, labour of $12, variable overhead of $4, and xed overhead of $6. Each shelf normally sells for $44. A customer is offering to buy 1,750 units at $34 each. Shelf-It will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Revenues Costs ' l ' Net income! (loss) $ ' (b) Should Shelf-It accept the special order? ' V

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