Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $8, labour of $13, variable overhead of $5, and fixed overhead of $4. Each shelf normally sells for $45. A customer is offering to buy 1,400 units at $31 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.

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

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