Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $12, labour of $17, variable overhead of $4, and fixed overhead of $4. Each shelf normally sells for $53. A customer is offering to buy 2,000 units at $39 each. Shelf-It will incur additional costs of $1 per shelf to imprint a logo and to pay for shipping.

(a)Prepare an incremental analysis for the special order.

Reject OrderAccept OrderIncremental Revenue and CostsRevenues$

$

$

Costs

Net income / (loss)

$

$

$

(b)Should Shelf-It accept the special order?

Yes

No