Special order calculations and decision

George Jackson operates a small machine shop. He manufactures one standard product available from many other similar businesses, and he also manufactures custom-ordered products. His accountant prepared the following annual income statement.

Custom sales Standard sales Total Sales $50 000 $25 000 $75 0DO Costs Materials 10 000 8 000 18000 Labour 20 000 8 000 29 000 Depreciation 6300 3 600 9 900 Power 700 1 100 Rent 8000 1000 7 000 Heat and light 600 100 700 Other 400 1 300 Total costs 44000 23 000 67 000 Income 5 2 000 8 000