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Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $ 8, labour of $ 19, variable overhead of $ 3, and

Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $ 8, labour of $ 19, variable overhead of $ 3, and fixed overhead of $ 5. Each shelf normally sells for $ 44. A customer is offering to buy 1,650 units at $ 37 each. Shelf-It will incur additional costs of $ 2 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order.

Reject Order Accept Order Incremental Revenue and Costs
Revenues $ $ $
Costs
Net income / (loss) $ $ $

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

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